Shanghai Gold Exchange sees growing interest from Southeast Asia amid gold rally.

As gold prices reach new all-time highs, China is reportedly seeking to position itself as a key custodian for global gold reserves. The People’s Bank of China (PBOC) is reportedly targeting central banks from friendly nations, aiming to bolster Shanghai’s role in the global gold market. This shift comes as central bank demand for gold surges, driven by economic uncertainty and concerns over the dominance of the U.S. dollar.

The Shanghai Gold Exchange has been a platform for foreign central banks to store gold since 2014. However, interest in this option has been limited until recently. Bloomberg reports that the PBOC is now actively courting central banks, particularly from Southeast Asia, to store their gold reserves in Shanghai. This push is part of China’s broader strategy to reduce dependence on Western financial centers, especially those in London, which currently dominate the global gold market.

China’s efforts to establish Shanghai as a key hub for gold storage could further solidify its position in global finance. With increased global demand for gold, particularly from central banks, China sees this as an opportunity to strengthen its financial infrastructure and attract more trading activity. Gold prices have reached unprecedented levels in recent months, driven by growing central bank demand. As of late September 2025, spot gold prices surged to nearly $3,785 per ounce, setting new records.

Analysts attribute the rise to several factors, including inflation concerns, economic instability, and a shift away from the U.S. Treasurys. In particular, gold is seen as an alternative investment, offering a hedge against currency and market volatility.

This rally in gold prices is providing additional momentum for China’s push. Central banks are increasingly turning to gold as part of their diversification strategies. In fact, the World Gold Council reports that global central bank purchases of gold have been on the rise, further fueling demand.