Yes, and so silver has two things pushing it up, gold and supply demand.
And while China has about 76 million oz of gold, the US has about 226 million oz.
So it would be logical to expect China to want as much gold as the US in that they have a plan to shore up the Yuan to challenge the dollar as the reserve currency.
As James Flynn, of the "Flynn Effect" said: understanding things is about connecting the dots (paraphrased-lol).
AI Overview
Yes, China's gold purchases are intended to serve multiple strategic goals, including shoring up the value of its currency ( yuan) against the U.S. dollar. By increasing its gold reserves, China seeks to reduce its dependency on the dollar and create a more resilient financial system that is less vulnerable to fluctuations in the global market. Gold also acts as a hedge against inflation and economic uncertainty, which can bolster confidence in the renminbi.
"De-dollarization" efforts:
China is actively shifting its reserves away from U.S. government bonds to gold, a move seen as an attempt to reduce its reliance on the dollar.
Currency stability:
A larger gold reserve can be used to support the value of the renminbi in times of potential stress or devaluation, though the direct link is complex and China sometimes benefits from a weaker currency for exports.
Hedging against inflation:
Gold is seen as a safe-haven asset and a hedge against inflation and economic uncertainty, which can help protect the value of China's reserves.
Increasing global influence:
By accumulating gold, China aims to increase its standing in the global financial system and challenge the dominance of the U.S. dollar.
Future potential:
While the renminbi is not currently a fully convertible, gold-backed currency, the long-term strategy is to build a strong foundation of gold reserves to support its international ambitions.
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