Gold reserves swell as nation diversifies forex holdings

China increased its gold reserves to 53.93 million troy ounces by the end of July from 53.32 million ounces a month earlier, according to data released by the central bank.

The world's biggest bullion consumer last month ended six years of mystery over how much gold it is hoarding, revealing a 57 percent jump in holdings since 2009 and overtaking Russia to become the country with the fifth-largest stash of the metal.

Bullion remains a large part of many central banks' reserves, decades after they stopped using it to back paper money. Stockpiles of the metal help China to diversify its foreign-exchange holdings as the world's second-largest economy seeks to raise the international profile of its own currency.