China Continues Driving Gold Higher
Gold has been 2025’s undisputed heavyweight champion — the best-performing commodity of the year, surging 29% and smashing records along the way. While domestic forces like looming recession risks and political uncertainty have helped fuel the rally, make no mistake: China is a main engine behind gold’s historic run, and the dragon isn’t slowing down anytime soon.1
After hitting a record $3,509 an ounce earlier this year, gold prices are holding strong around $3,300. According to JP Morgan, this is just a pit stop. The bank now predicts gold will average $3,675 by the fourth quarter of 2025, with a real shot at hitting $4,000 even sooner if demand stays hot. By the second quarter of 2026, JP Morgan says $4,000 gold will be locked in, driven by growing recession risks, more U.S. tariffs, escalating U.S.-China tensions, and relentless central bank buying.2
This isn’t market panic. It’s a structural reset of the global financial system. The CEO of U.S. Global Investors even predicted gold could reach $6,000 an ounce before the end of former President Trump’s term, citing a tidal wave of de-dollarization, sovereign gold accumulation, and a broad financial realignment.3
And at the heart of it all? China.
China’s Aggressive Gold Grab
The People's Bank of China has been the largest sovereign buyer of gold for five straight months. In the first quarter of 2025, China’s official gold reserves hit their highest level in modern history. Unofficial figures suggest they could be even bigger.
Beijing’s goal is clear: ditch the dollar, build the yuan into a global trading heavyweight, and escape Washington’s financial grip. Their push away from the dollar is both political and economic. Rising tensions with Washington have only reinforced China’s determination to insulate itself from dollar-based sanctions and financial pressure. Beijing publicly called on other nations to defy Trump’s tariff policies, rallying the world against what they call American "bullying." This is about power, and gold is at the center of the fight.
Source: https://www.newsmax.com/