China's Gold Demand Surges to Near-Record Levels

Despite weak demand from Western countries, gold prices have held above $4,000 an ounce, primarily driven by strong demand from China. BMO Capital Markets reports that China may hold around 30,000 tonnes of gold, which exceeds official figures and accounts for about one-third of global gold demand.

The country's stockpile, including central bank reserves and private holdings, is nearing the U.S. level and could surpass it within five years. This expansion of China's influence on global gold pricing also signals a strategic push to boost the yuan's international role and gold's importance in its economy.