On October 8, 2025, gold surpassed $4,000 per ounce for the first time in history. Over the year, the metal’s price grew by more than 50%, making it a significant event in global financial markets. Each time gold breaks a psychological barrier, it reflects broad economic and geopolitical shifts. After the crises in 2008, 2020, and 2025, the price surge signals economic uncertainty and a rethinking of major currencies’ roles.
In 2024, more than one fifth of global gold demand came from central banks, with China taking the lead. The People’s Bank of China increased its gold reserves for 11 consecutive months, reaching 2,300 tons valued at $280 billion by September 2025. At the same time, China is reducing its holdings in US Treasuries, shifting part of its reserves to gold. Despite this, gold accounts for less than 9% of China's reserves, below the global average.
In June 2025, the Shanghai Gold Exchange opened its first offshore vault in Hong Kong and plans to expand to Singapore, Zurich, and Dubai, strengthening competition with London—the world’s largest physical gold market. Simultaneously, China seeks to include BRICS and allied countries in its financial sphere, inviting their central banks to store gold in China and trade through the Shanghai exchange.
China’s strategy includes building infrastructure resilient to sanctions, supporting the yuan, diversifying from the dollar, and steadily increasing its global influence. However, China faces major challenges: a property sector debt crisis, an aging population, state regulation of markets, and limited transparency.
Despite its progress, China's path to replacing the dollar and achieving financial leadership is complex, requiring international trust, market liquidity, and internal stability. Beijing’s actions are already shifting the balance in the global economy, moving the world towards a multipolar financial system.
China is unlikely to replace the US, but its efforts are laying the foundation for a new world order.
