Share this article
As Gold Keeps Setting New Highs, China Reportedly Wants to Be Its Custodian for Central Banks
Beijing is said to be courting foreign central banks to store bullion in Shanghai vaults as gold hovers near record highs and demand strengthens.
Updated Sep 27, 2025, 6:36 p.m. Published Sep 27, 2025, 3:48 p.m.
What to know:
- China is reportedly courting central banks to store gold in Shanghai as part of a push to boost its role in bullion markets.
- Spot gold hit fresh records near $3,785 an ounce Friday as demand from central banks fueled momentum, with analysts linking the move to de-dollarization.
- Analysts note China’s domestic gold market is already the world’s largest, but London remains the leading hub for global reserve custody.
China is reportedly making a bid to expand its influence in global gold markets by offering to hold foreign central bank reserves within its borders.
According to Bloomberg, the People’s Bank of China has used the Shanghai Gold Exchange in recent months to pitch central banks in friendly countries on the idea. At least one Southeast Asian country has shown interest, people familiar with the matter told Bloomberg.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The push would allow Beijing to strengthen its role as a bullion hub and reduce reliance on Western financial centers. Custodian services are a key part of that infrastructure, helping to attract more trading activity and enhance credibility.
Gold analyst Jan Nieuwenhuijs noted on X that foreign central banks have technically been able to store gold in Shanghai since 2014, but uptake has been minimal so far. He added that one Southeast Asian country, possibly tied to the mBridge cross-border payments project, could be evaluating the option.
The timing comes as central bank demand has underpinned a powerful rally in bullion.
Spot gold climbed as high as $3,784.74 an ounce in New York on Monday, setting another record before easing slightly. According to MarketWatch, the metal closed last week at $3,789.80, up 43.59% year-to-date — well ahead of bitcoin’s 17% gain, the S&P 500’s 12.96% rise and the Nasdaq Composite’s 16.43% increase.
Kitco News reported that despite overbought conditions, analysts expect gold’s bullish momentum to continue, citing inflation trends and growing demand for alternatives to U.S. Treasurys. Chris Mancini, co-portfolio manager at Gabelli Funds, said investors are increasingly turning to gold as a substitute for the dollar.
Still, China faces competition from established markets such as London, whose vaults hold more than 5,000 tons of global reserves. The World Gold Council ranks China fifth among central bank gold holders, but its domestic market for jewelry, bars and coins remains the world’s largest.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Boring Bitcoin's Green Light Moment Incoming?
BTC continues to bore traders with its directionless price action. But some indicators are pointing to renewed bullishness.
What to know:
- The Federal Reserve's recent rate cut did not significantly impact bitcoin's price, which remains directionless.
- Bitcoin's MACD histogram signals potential bullish momentum, while the dollar index's points bearish.
- The ETF flows continue to disappoint.
Top Stories
