Bankless · Thursday, August 13, 2026
Gold prices have seen a significant rebound, up 14% since July 17th, reaching over $4,500 per futures contract. Analysts attribute this surge to the People's Bank of China (PBOC) re-entering the market to inject liquidity, a move potentially driven by the yuan's debasement. This influx of liquidity is theorized to be flowing into gold as a preferred store of value for Chinese citizens, especially with concerns over the real estate market.
“The other price chart to look at, I think, that's been interesting and somewhat surprising, I think, for a lot of people who came out of nowhere, is gold is back up. So gold has been up 14% since July 17th, David.”
“And he just points to the PBOC, People's Bank of China. They are back in the market injecting liquidity. They have their own debasement thing going on with the yuan. And the proceeds from that liquidity, the liquidity that the PBOC injects, Michael Howell argues, that goes into the price of gold.”
“China is purchasing gold and also liquidity kind of sloshes around and finds its way into gold primarily in China market. Michael Howell argues this is because, like, crypto is banned, Bitcoin is banned, there's a lot of capital controls Property has burnt so many Chinese citizens over the years.”