China Boosts Gold Purchases to Record Levels Amid Tensions:
Amid escalating geopolitical tensions and an ongoing trade war with the United States,
China is adopting a clear hedging strategy by ramping up gold
purchases at an unprecedented pace.
According to data from the World Gold Council,
China’s demand for gold, through both exchange-traded funds (ETFs)
and official reserves have reached record levels during the first half of 2025.
This move reflects a strategic effort to reduce reliance on the U.S. dollar
and enhance economic stability in a volatile global landscape.
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China Increases Gold Purchases
China Increases Gold Purchases
As global geopolitical tensions escalate and the trade war between the U.S. and China intensifies,
Beijing has recorded a sharp surge in gold buying, a strategic shift toward
Hedging and reducing dependency on the dollar.
According to the World Gold Council,
China’s demand for gold ETFs reached a record 45 metric tons in Q2 2025,
up from 18 tons in Q1.
This brought the total demand in the first half of the year to 63 tons—the highest ever recorded.
Thanks to this strong growth, China’s ETF gold holdings soared by 74% year-over-year to reach 200 tons.
In parallel, the People’s Bank of China (PBOC) boosted
its official gold reserves by 2 tons in June,
bringing total reserves to a record 2,299 tons.
Goldman Sachs estimates that China also made unofficial purchases
of 15 tons of gold from the London market in May, eight times more than the amount officially reported.
Notably, China is the world’s largest gold producer,
accounting for about 10% of global production.
However, it consumes nearly three times what it produces,
making it the world’s largest gold importer as well.
As of the end of May, China’s total gold reserves stood at 73.83 million ounces,
up from 73.77 million ounces in April.
Despite the increase in volume, the dollar value of the reserves fell to $241.99 billion at the end of May,
down from $243.59 billion in April, due to fluctuations in global gold prices and the dollar exchange rate.
U.S. Natural Gas Hits 3-Week High Amid Soaring Electricity Demand Due to Heatwave
Natural gas prices in the United States rose at Friday’s close,
hitting their highest level in three weeks.
The rally was fueled by a sharp increase in electricity consumption
Driven by high temperatures across much of the country.
August gas futures on the New York Mercantile Exchange (NYMEX) climbed by 0.60%,
or 2.3 cents, to settle at $3.565 per million British thermal units (MMBtu)
The highest closing level since June 27.
The contracts also posted strong weekly gains of about 8%.
Temperatures are expected to remain above seasonal norms across the U.S. at least through August 2,
with next week projected to be the hottest of the summer so far,
keeping electricity demand at elevated levels.
China Boosts Gold Purchases to Record Levels Amid Tensions