While the U.S. Federal Reserve Bank has attempted to keep gold prices low in an effort to preserve world dominance of the U.S. dollar, other countries have taken advantage by accumulating more precious metal at bargain prices.
China isn't the only country bullish on gold. For the first time in years, both Poland and Hungary have amassed gold in 2018, and other central banks are following suit.
Many global central banks have been hoarding gold for more than a decade. Prior to the abandonment of the gold standard, this was common practice. The Federal Reserve or the Bank of England and other central banks were in the business of buying and selling gold and adding to their reserves. Gold was directly connected to the value of a currency. Many countries tied their currency to the value of the U.S. dollar.