As France pulls gold from the US, how can China develop into the next global gold hub? | South China Morning Post

As the French central bank repatriates gold reserves from the United States, analysts say China should seize this “strategic window” to develop itself into the next global gold hub.

They added that Beijing can leverage policy stability, alongside Hong Kong’s strengths in fintech such as blockchain, to build a modern gold trading centre, particularly as policy volatility under US President Donald Trump’s second term heightens global concerns and deepens the de-dollarisation trend.

“I think [the French central bank’s move] is a signal worth watching – it is unusual,” said Raymond Yeung, chief Greater China economist at ANZ Bank.

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“For China, especially Hong Kong, this is a strategic window that needs to be seized,” he added, citing growing doubts over the US dollar-dominated global financial system and the broader investment demand for gold.

The Bank of France has replaced its remaining gold reserves held in New York with the equivalent amount bought in Europe and stored in Paris between July 2025 and January 2026, as reported by Radio France Internationale on Saturday.

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Meanwhile, economists in Germany, such as Michael Jaeger, head of the Association of German Taxpayers and the European Taxpayers Association, are also calling on the government to withdraw its gold holdings from the US.

“Trump is unpredictable and he does everything to generate revenue,” Jaeger previously told local media. “That’s why our gold is no longer safe in the Fed’s vaults.”