The People’s Bank of China’s gold reserves, which have remained unchanged for more than two years, have continued to increase over the past two months. This rare increase in holdings has caught the attention of insiders, Beijing Business Today reported.

According to the latest official data, the PBOC’s gold reserves recorded 59.94 million ounces by the end of January, adding 380,000 ounces from December and rising for two consecutive months.

China’s central bank is not the only institution buying up gold. Since last year, global central banks have been increasing their gold reserves as well.

In 2018 global central bank gold reserves increased by 651.5 tons, a rise of 74% year-on-year, the World Gold Council said in a report. Global gold demand also increased by 4%, the report added.

Wang Hongying, director of the Institution of Financial Derivatives of China, thinks US stocks are at a record high, while US economic growth is relatively weak.

Once the US economy has a relatively large correction, it will cause a very high premium (of US stocks), resulting in a sharp increase in liquidity. Recent moves by global central banks to return to the gold standard is actually an important way of fighting inflation.