Gold secured another record high on Tuesday, pushing past $3,800 per troy ounce and bringing its year-to-date return to over 40%.
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That comes as China sets its sights on becoming the global custodian of the precious metal, according to Bloomberg. In recent months, the Shanghai Gold Exchange has been encouraging global banks to store their gold in China, which could lead to a lower dependence on the dollar and higher dependence on the yuan.
China Boosts Gold Exposure as U.S. Continues to Lead
The U.S. boasts the largest gold reserve in the world with over 8,000 tons of the precious metal. In comparison, China holds the sixth most gold reserves globally at 2,300 tons, according to Trading Economics. At the same time, China operates the world’s largest domestic market for gold.
In August, the People’s Bank of China (PBOC) extended its gold-buying streak to 10 months. Other central banks have also been buying as gold continues to set new highs.
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