China’s central bank (PBOC) has authorized commercial banks to purchase foreign currencies specifically for gold imports following an expansion of gold import quotas last month. This strategic move comes as gold prices have rallied amid market volatility caused by President Trump’s trade war, which has also strengthened Asian currencies as investors move away from U.S. dollars. The policy adjustment serves a dual purpose: helping meet increased demand for gold while simultaneously easing the yuan’s appreciation, which has been hurting Chinese exporters already struggling with U.S. import tariffs. Despite gold prices reaching $3,500 per ounce last month, the PBOC has continued to build its gold reserves since November, viewing the precious metal as a safe asset during times of high uncertainty.

BofA Sees $5,000 Gold as Inflation and Fed Cuts Loom
Gold surged to a new record above $4,000 while silver topped $50, powered by Fed policy uncertainty, sticky inflation, and renewed U.S.–China trade tensions. Bank of America now sees $5,000 gold by 2026 as Wall Street braces for more rate cuts and rising volatility.