China has been accumulating gold for 15 consecutive months, with reserves hitting a record $369.6 billion. China’s gold accumulation spree complements its de-dollarization agenda. The country is at the forefront of moving away from a US dollar-centric world. China has made substantial inroads in pushing for more yuan use for global trade settlement. Let’s discuss if its sudden increase in gold appetite is a way to move against the dollar.

Is China’s Gold Accumulation A Push For Further De-Dollarization?

2025 saw a rapid shift towards commodities such as gold and silver. Investors began pulling back from stocks and cryptocurrencies as macroeconomic factors began to show signs of weakness. Gold and silver have hit multiple all-time highs over the last few months as investors and countries diversify their portfolios and take a more risk-off approach.

The move to gold is also a way for China to protect itself from the falling value of the US dollar. The development also serves China’s ambitions of promoting its yuan for global trade. Over the last decade, the yuan has seen substantial subscribers for mutual trade with China.

Can The Yuan Replace The USD?

While China has made substantial developments to promote the use of the yuan for international trade settlements, replacing the dollar may be quite far-fetched, at least for the foreseeable future. Sanctioned countries have moved to other currencies due to the lack of access to the greenback, but other trade partners will likely not ditch the dollar just yet.

Also Read: China Stops Dumping US Dollar Treasuries, Buys $170 Billion at Pace

The US dollar-based system is a well-oiled machine. No other currency comes close to the dollar in terms of liquidity and stability. The BRICS bloc of nations has also expressed the desire to launch its own currency for mutual trade, but such a move could bring severe consequences. President Trump had said that he would retaliate with heavy tariffs on any country that attempts to ditch the dollar for other currencies.