Bullion hit the highest level in more than six years in September as slower growth, the trade war with the US, and rate cuts encouraged investor demand.

Official purchases will likely continue as protectionist policies and geopolitical concerns add to demand, said Suki Cooper, precious metals analyst at Standard Chartered Bank.

ALSO ON RT.COMRussia & China stockpiling gold because ‘they can read the writing on the wall’ – Peter Schiff“Given strained relations with the US, China needs a hedge against its large holdings of the dollar, and gold serves that function,” Howie Lee, an economist at Singapore-based Oversea-Chinese Banking, told Bloomberg. “As China becomes a superpower in its own right, I expect more gold-buying.”

The bullion build-up coincides with a trade war with the US and a marked slowdown in growth at home. High-level trade talks are set to resume in Washington this week. US President Donald Trump said he was confident of reaching a deal, while Chinese officials are signaling their reluctance to agree to a broad trade deal, according to media reports.

ALSO ON RT.COMGolden rule: Russia brings bullion & foreign currency reserves to new highsTrade tensions and market uncertainty have set the stage for a further boost in gold purchases by global central banks. In the first six months, central banks worldwide picked up 374.1 tons, helping push total gold demand to a three-year high, according to the World Gold Council. Along with China, Russia has been another large buyer of the yellow metal, adding substantial quantities of bullion.

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