Chinese Banks Accumulate 12,000 Tons of Gold – The Checkmate in the American Reserves?

[Igor Pereira]

While Western economists insist on calling Gold a "barbaric relic", the East is silently building the largest reserve of real value in modern history. Newly compiled data from the 3rd quarter profit reports of 42 banks listed in China reveal a number that should be on every financial headline in the world.

By Igor Pereira Financial Market Analyst

Chinese banks now hold a combined total of approximately 12,000 tonnes of gold, evaluated in more than 1.2 trillion yuan. Below, I explain why this changes the global power dynamics and the price of the XAU/USD.

1. The Number That Scares the Dollar

To put into perspective what 12,000 tons mean:

• USA (Fort Knox): The United States' official gold reserves are about 8,133 tonnes.

• The Gap: The Chinese banking system now has Exactly 3,867 tonnes THE MORE than all US sovereign reserves added.

• The Message: This is not just diversification; it is a preparation for a monetary system where the Dollar loses its hegemony. China has turned its banks into war vaults.

2. The Gold Banking Race (Chinese Report Analysis)

The document of Securities Times which we obtained confirms this frantic institutional race. The title translated "Shine Opportunities: Precious Metal Business in Banks Grow Significantly" hides explosive growth data:

• The Nanjing Bank Case: The report shows that the turnover of precious metals in this bank has grown unbelievable 11,914.36% compared to the end of 2024.

• Growth Generalised: Other banks, such as Hangzhou Bank, have grown 1.523,57%. Joint stock banks such as SPD Bank and CITIC Bank grew 350% and 200% respectively.

• Because it matters: When financial institutions increase their positions by 11,000%, they are not speculating. They are fleeing systemic risks (fiduciary debt) and seeking high quality collateral.

3. Impact on XAU/USD and Western Iran

The irony is palpable. The West sells gold to buy debt securities (which yield negative interest in real terms), while China absorbs all available physical metal.

• Price Floor: With an institutional demand of this size (12,000 tons outside the market), the Gold price has a fundamental steel support. Falls are buying opportunities because China continues to accumulate.

• Gold as Coin: China is proving that Gold is not a relic; it is the basis of the next financial system.

The East Smart Money has already positioned itself. They own more gold than the United States. If you still don't have Gold in your wallet, you're betting against the largest real asset accumulator on the planet. The XAU/USD high trend is structural and geopolitical.

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By Igor Pereira Financial Market Analyst