EditorialHong Kong has a gilt-edged opportunity to shine as gold trading hub

The rapid loss of confidence in the US opens the door for China and especially Hong Kong

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A dealer displays gold bars in a shop in Dubai’s Gold Souk on April 13. Photo: AFP

Published: 6:45am, 15 Apr 2026

Gold has become a safe haven for many investors amid global turmoil, including the recent Middle East war. At the same time, volatile US policy has tarnished the appeal of the US Federal Reserve as a secure place for central banks to store reserves, creating a golden opportunity for China and especially Hong Kong.

The biggest sign of shifting confidence came from the Bank of France. Radio France Internationale reported on April 4 that the central bank had replaced its remaining gold reserves held by the Fed in New York with an equivalent amount bought in Europe and stored in Paris between July 2025 and January 2026.

Other governments could follow suit amid concerns about the US weaponising its financial power. Association of German Taxpayers and the European Taxpayers Association head Michael Jaeger has warned Berlin that its gold is “no longer safe in the Fed’s vaults”.

Jaeger cited US President Donald Trump’s unpredictability and focus on revenue generation. However, confidence has also been eroded by growing doubts over the US dollar-dominated global financial system at a time of rising oil prices, ballooning US debt and fiscal deficits. Amid tariffs, sanctions and frozen assets, many governments are searching for secure havens for assets that must remain outside the reach of unilateral Western intervention.

Hong Kong is stepping up to get a piece of this niche market. Earlier this year, the city’s government said a central clearing system for gold is on track to begin trial operations within the year. Authorities have announced plans to increase gold storage by more than 10 times the current capacity to more than 2,000 tonnes within three years. Hong Kong has explored integrating blockchain and trial operations for central clearing, and rolled out measures to attract precious metals companies. As the central government strengthens gold trading in Shanghai, Hong Kong has signed an accord with the city for a cross-border gold trade clearing system.

Hong Kong’s unique advantages, including connectivity with mainland China as well as international markets and legal frameworks, will also be important as it tries to shine as a global gold trading hub.

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The rapid loss of confidence in the US opens the door for China and especially Hong Kong

The rapid loss of confidence in the US opens the door for China and especially Hong Kong