China Seeks to Store Foreign Central Bank Gold as Prices Hit Record Levels – 27/9/2025
China is reportedly courting foreign central banks to store bullion in Shanghai as gold hovers near all-time highs, reflecting Beijing’s effort to expand its influence in global markets.
According to Bloomberg, the People’s Bank of China has recently pitched the idea to central banks in friendly countries through the Shanghai Gold Exchange, with at least one Southeast Asian nation reportedly expressing interest. The initiative aims to strengthen China’s role as a bullion hub while reducing reliance on Western financial centers. Custodian services are a key part of the plan, helping attract more trading activity and boost market credibility.
Gold analyst Jan Nieuwenhuijs noted on X that foreign central banks have technically been able to store gold in Shanghai since 2014, though adoption has been limited. One Southeast Asian country, possibly linked to the mBridge cross-border payments project, is reportedly evaluating the option.
The move comes amid strong central bank demand that has fueled gold’s rally. Spot gold reached $3,784.74 an ounce in New York on Monday before easing slightly. MarketWatch reported that gold closed last week at $3,789.80, up 43.6% year-to-date — far outpacing Bitcoin’s 17% gain, the S&P 500’s 12.96% rise, and the Nasdaq Composite’s 16.43% increase.
Analysts remain optimistic despite overbought conditions. Chris Mancini, co-portfolio manager at Gabelli Funds, said investors are increasingly turning to gold as a hedge against inflation and an alternative to U.S. Treasuries.
Nevertheless, China faces competition from established bullion markets such as London, whose vaults hold over 5,000 tons of global reserves. The World Gold Council ranks China fifth among central bank gold holders, though its domestic market for jewelry, bars, and coins remains the largest in the world.
