China Seeks to Expand Influence in Gold Markets Amid Record Prices

China is positioning itself as a custodian for central bank gold reserves, leveraging the Shanghai Gold Exchange to court foreign institutions. At least one Southeast Asian nation has expressed interest in storing bullion within Chinese borders, signaling a strategic MOVE to reduce reliance on Western financial centers.

Gold's rally continues unabated, with spot prices hitting a record $3,784.74 per ounce this week. The metal's 43.59% year-to-date gain outpaces Bitcoin's 17% rise and major equity indices. Analysts note this push coincides with unprecedented central bank demand for bullion as a reserve asset.

While Shanghai has offered Gold custody since 2014, adoption remains limited. The current initiative appears tied to broader financial infrastructure projects like mBridge, China's cross-border payments platform. Market observers suggest this could reshape global bullion flows if successful.