(Kitco News) - Even after buying 126 tonnes of gold so far in 2023, China still has a long way to go as it builds up its official reserves, according to analysts at BMO Capital Markets.

"Our analysis would certainly suggest that above-ground reserves of gold in China, both privately owned and those owned by the central bank, are significantly higher than annual consumer demand and official purchases might suggest," said Rory Townsend and Colin Hamilton, the authors of the report. "However, given the geopolitical backdrop and concerns over U.S. dollar dominance, we view further net additions to gold holdings as highly likely."