While the economic tensions escalate and the Trump Administration continues its trade war continued, China has begun to Safe-haven assets increase. Gold is the choice of the Central Bank seems to be, but Bitcoin is likely to be a good Option for the population.
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China increases Gold reserves by 100 tons
According to a Bloomberg report, China has been stored in the meantime ingot 100 tons of gold, which contributes to the in December, begun in accumulation.
China’s gold-buying spree nears 100 tons as trade drags https://t.co/ZxuqBv9KGS
— Bloomberg Markets (@markets) 9. September 2019
Data from the People’s Bank of China show that it has increased its gold bullion holdings in August to 62,45 million ounces, compared with 62,26 million in July. In the past month, the Chinese reserves, the amount in the last eight months to approximately 100 tons have been added, nearly 6 tons of Gold.
As the Central banks lowered interest rates as a reaction to the economic slowdown, the gold price inevitably. Russia was on a gold tour buy, because the United States harm with sanctions to continue their business.
As a result, the price of gold has risen this year alone, about 18 percent, reached last week, according to goldprice.org a six-year high of 1,550 $/oz. The buying frenzy is set to continue, an Economist at National Australia Bank Ltd., John Sharma:
“In addition, Gold offers, in view of the increasing political and economic uncertainty, an ideal hedge, and will be sought after, therefore, the Central banks in the world.”
The Goldman Sachs Group is one of the investment banks expect that the precious metal will exceed in the coming months, the brand of 1,600 US dollars per ounce.
Yuan down, Bitcoin up
The ongoing trade war has already taken the Chinese Yuan, fell to the lowest level in more than a decade against the Dollar. This has been observed with a negative correlation to Bitcoin exchange rate.
Bloomberg noted the decline in a report last week that suggests that the “digital Gold” is likely to be a safeguard for the people, because the national currency is weaker.
Recent protests in Hong Kong have also strengthened the appeal of Bitcoin, as protesters tried to overrun the Chinese banks. All indicators point to a further accumulation of BTC by the world’s largest population, since the Central Bank to accumulate Gold.
Text evidence: bitcoinis, Martin Young