What’s Behind China’s Gold-Buying Spree?

Gold prices reached all-time highs in July above $2,450 per ounce.

Gold prices have been among the best-performing commodities since late 2022 .

China 's gold-buying frenzy began in earnest in November 2022 .

The People’s Bank of China (PBoC) bought more gold than all other central banks combined last year .

China ’s de-dollarisation efforts are also being driven by its commitments to BRICS+. The group of emerging economies founded by Brazil , Russia , India , China and South Africa recently added Iran , Egypt , Ethiopia , Saudi Arabia and the United Arab Emirates to its list of members.

The World Bank noted that as of Q1 2024 , the aggregate central-bank holdings of gold within the BRICS+ nations represented nearly 17 percent of all the gold held in the world's central banks.

Speculation that gold-backed BRICS money is in the offing continues to grow.

Philip Klapwijk , managing director of Hong Kong -based consultant Precious Metals Insights, predicted further growth in demand for gold’s safe-haven appeal.

“There isn’t much alternative in China . With exchange controls and capital controls, you can't just look at other markets to put your money into.”.