Precious metal prices have made an explosive start to February, surging to one-month highs as China’s latest rush to Gold sparks fresh buying frenzy.
According to data tracked by GSC Commodity Intelligence – Chinese Investors, households and banks have been piling into Gold at one of the fastest paces seen since the Global Financial Crisis as the country's stock market and real-estate sector continues to sink deeper into economic meltdown.
Together with blistering demand from central banks, China’s bullion binge helped push the price of Gold to all-time record highs in December and has kept prices firmly above $2,000 an ounce this year – ultimately setting a new floor for the market.
The rush toward the safe haven metal marks the uncertainty around China's financial health. China's market mayhem has dragged the country's benchmark CSI 300 equity index down more than a fifth over the past year, while the value of new home sales among the country’s biggest developers has fallen 35% from a year earlier.
China's stock market hasn’t just had a bad start to 2024. It’s been rough going since February 2021, when the market reached its peak. Over the past three years, around $6 trillion – equivalent to roughly twice Britain’s annual economic output has been wiped off the value of Chinese stocks.
The astonishing losses, reminiscent of the last Chinese stock market crash of 2015-2016, highlight a growing crisis of confidence among investors concerned about the country’s future. Even foreign investors have now pulled out almost 90% of the money they invested in Chinese stock market right back out.
During times like these, finding a safe place to store money becomes particularly important, which would explain why Gold exposure has become a crucial necessity for investors everywhere.
To quote analysts at GSC Commodity Intelligence – mounting evidence shows that we are now in a “new era” for Gold. China’s bullion buying spree simply represents, yet another bullish tailwind for precious metal prices – alongside all the other macro and geopolitical events currently unfolding.
Interestingly, Gold priced in multiple currencies including British Pounds, Euros, Australian Dollars, Chinese Yuan and Japanese Yen hit fresh all-time record highs this week.
The big question now is will Gold price denominated in US dollars be next to hit fresh all-time record highs?
Analysts at GSC Commodity Intelligence believe it's not a question of 'if' but 'when'. In fact, you just have to take a look at what happened in 2023.
Last year, Gold priced in multiple currencies set new all-time highs by an average of 13.7 weeks prior to Gold price denominated in US dollars. If this is a leading barometer for predicting the performance of Gold prices as a whole, then this ultimately means one thing.
Higher Gold prices are coming! That’s welcoming news for the bulls, but painful for anyone sitting on the sidelines, who must now decide how much FOMO they can handle.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.
Recommended Content
Editors’ Picks

EUR/USD remains near 1.0400 post-US PCE
The US Dollar’s inconclusive price action allows some recovery in EUR/USD, keeping the pair around the 1.0400 region following the release of PCE inflation data for the month of January.

Gold slumps to fresh multi-week lows below $2,840
Gold stays under bearish pressure and trades at its lowest level in three weeks below $2,840. The uncertainty surrounding the Trump administration's trade policy and month-end flows seem to be weighing on XAU/USD, which remains on track to snap an eight-week winning streak.

GBP/USD clings to gains just above 1.2600 after PCE data
GBP/USD remains positively oriented in the 1.2600 neighbourhood as the Greenback is navigating a vacillating range following the PCE inflation release.

The week ahead – US Payrolls, ECB rate meeting, ITV results – W/c 3rd March
Having seen the Federal Reserve keep rates on hold last month the US labour market continues to show remarkable resilience, despite seeing a slowdown in hiring in January, after a blow out December number.

Weekly focus – Tariff fears are back on the agenda
While the timing of the EU measures remains still uncertain, Trump surprised markets on Thursday by signalling that the 25% tariffs on Canada and Mexico will be enacted when the one-month delay runs out next Tuesday.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.