China Opens $27B Insurance Gateway to Gold Market

China has launched a pilot program allowing ten major insurance companies to invest up to 1% of their assets in gold, potentially releasing $27.4 billion into the gold market.

This historic policy shift, which began last Friday, comes as gold prices hit new records above $2,898 per ounce, driven by Fed rate expectations, central bank buying, and Trump-related market uncertainty.

This development emerges against a backdrop of record gold prices and limited investment options in China’s struggling economy. However, analysts suggest actual demand may develop gradually as insurers carefully time their entries into the market.

The policy change coincides with gold’s continued rally past $2,898, supported by anticipated Fed rate cuts, central bank purchases, and market reactions to Trump’s trade policies.