China Reaffirms Tight Grip On Gold Market, Ushering In A New Monetary Era
Summarize this article with:
Jan Nieuwenhuijs2.04K FollowersFollow5ShareSavePlay(6min)CommentsSummaryWithout a doubt, the Chinese central bank is still the leading single entity that is driving up the gold price to record highs, YTD by more than 55%.My estimated total for Chinese monetary gold reserves stands at 5,411 tonnes in Q3 vs. 2,304 tonnes reported by the central bank of China to the IMF.Why is China buying so much gold?China will be the largest, or one of the largest, trading partners of countries participating in mBridge, and so the renminbi will be a dominant trade currency in the arrangement. Just_Super/iStock via Getty Images Without a doubt, the Chinese central bank (PBoC) is still the leading single entity that is driving up the gold price to record highs, year-to-date by more than 55 percent. In the third quarter ofThis article was written byJan Nieuwenhuijs2.04K FollowersFollowJan Nieuwenhuijs is a financial researcher and gold analyst at Money Metals. Nieuwenhuijs mostly writes about gold, covering topics such as the global physical gold market, derivative markets, central banks' gold policy, and the international monetary system.Quick InsightsHow does PBoC’s gold buying impact global reserve composition?PBoC’s aggressive accumulation has pushed gold’s share of global reserves to nearly 28%, with non-Western countries now holding 49% of central bank gold.What is the strategic rationale behind China’s gold accumulation?China seeks to replace, not just hedge, the U.S. dollar by enabling trade through mBridge, requiring liquid gold markets and robust international vaulting infrastructure.How does mBridge alter the international currency landscape?mBridge enables bilateral trade in local digital currencies, bypassing the dollar, with gold as a settlement asset, positioning the renminbi as a dominant trade currency.Recommended For You