China Set to Overtake US as World's Largest Gold Holder

China's gold reserves are growing at an unprecedented rate, according to analysts at BMO Capital Markets. The bank estimates that China has accumulated around 30 kilotons of gold above ground, exceeding official data.

The country is driving approximately one-third of global demand flows, and its influence on the market is larger than many investors realize.

BMO expects growing Chinese demand to be the biggest factor pushing gold prices higher in the second half of the year. The analysts predict that China's stockpile could surpass U.S. holdings within the next five years, with current buying rates suggesting it may reach parity sooner.