According to Newsweek , in the context of global trade facing many challenges, investors are increasingly strengthening their belief in gold's long-term safe haven status. This has caused the current gold price to far exceed previous forecasts of many analysts. Since the beginning of the year, the world gold price has increased rapidly and continuously set new records.

Experts say strong buying demand from the Asian market, especially China, is the main driving force behind the increase in world gold prices in recent years.

Demand for gold from China is surging, as evidenced by robust trading volumes on both the Shanghai Gold Exchange and the Shanghai Futures Exchange, said Adrian Ash, director of research at BullionVault.

Sharing the same view, Mr. Joseph Cavatoni, senior market strategist at the World Gold Council (WGC), said that investors globally are looking to minimize risks in the context of continuous market volatility.

Chinese gold price .jpg
China is continuously buying gold. Photo: NW

"Strong buying from China has directly pushed up gold prices, with the inflow of money into gold from the People's Bank of China reaching record levels," said Mr. Cavatoni.

According to Mr. Cavatoni, Chinese private investors and state-owned institutions have maintained active gold purchases over the past 15 years.

However, the recent surge in demand for precious metals has coincided with a period of US-China trade tensions under the Trump administration, with China becoming the focus of US efforts to reshape global trade in Washington’s favor.

Cavatoni said that holding gold helps Beijing reduce risks from its over-reliance on the US economy in trade, payments and investment activities.

China's increased gold purchases are also an effort to mitigate potential risks from US policies and strengthen the country's economic sovereignty , Mr. Adrian Ash added.

Data from the China Gold Association shows that demand for gold bars and coins increased by 30% in the first quarter of this year alone. The complex geopolitical situation and global economic uncertainties have made gold a popular hedge and store of value.

Notably, spot gold prices showed signs of cooling last week as US-China trade tensions eased somewhat.

While it is difficult to pinpoint the exact figure for China’s government gold reserves, Ash said it is an important factor. According to the WGC, China’s official reserves as of March 2025 were around 2,292 tonnes of gold. However, some experts speculate that the actual figure could be as high as 30,000 tonnes.

In addition to actively buying gold, China has also increased its use of financial instruments such as exchange-traded funds (ETFs). Mr. Joseph Cavatoni said that of the approximately $6 billion in inflows into gold ETFs in Asia in the first three weeks of April, China alone accounted for $5.8 billion.

Peter Schiff, a veteran gold investor, said China will move money out of dollars and US Treasury bonds. They will buy more gold, euros, pounds, German and European government bonds.

In the face of the strong increase in gold prices, major financial institutions have also adjusted their forecasts. Goldman Sachs predicts that gold prices could reach $3,700/ounce by the end of this year. JPMorgan even gives a figure of over $4,000/ounce by the second quarter of 2026.

Source: https://vietnamnet.vn/vi-sao-trung-quoc-lien-tuc-gom-vang-bat-chap-gia-cao-2398804.html