As France pulls gold from the US, how can China develop into the next global gold hub?
Federal Reserve is no longer seen as a ‘safe’ place for nations to store gold as Trump’s unpredictability spooks the world’s central banks
“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.
“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.
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.”