{
  "id": 114441,
  "title": "China’s outsize commodities footprint cushions global energy shocks: Goldman Sachs",
  "url": "https://urgent.news/2026/08/04/chinas-outsize-commodities-footprint-cushions-global-energy-shocks",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-04T02:50:25.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/business/commodities/article/3362861/chinas-outsize-commodities-footprint-cushions-global-energy-shocks-goldman-sachs"
  },
  "original_language": "en",
  "account": "China's substantial role in global commodities markets is helping to stabilize energy prices and gold, according to Goldman Sachs. The investment bank's analysts, Daan Struyven and Lia Thomas, refer to Beijing as the \"volatility arbiter\" in the global commodity markets, stating that China's policies help dampen price volatility in hydrocarbons and gold through price-sensitive import demand. However, China's dominance in critical metals allows it to use supply chain control as leverage in its competition with the US, amplifying volatility in these markets.\n\nThis contrast has been evident in energy markets this year, with China's low crude oil imports helping to prevent further price hikes despite the record supply shock. Beijing has stabilized markets since March by reducing net imports of seaborne crude oil and liquefied natural gas while increasing exports of organic chemicals and plastics. Gold prices have also been positively affected, with a roughly 20-tonne increase in China's monthly central bank purchases since Russia's reserves were frozen in 2022 lifting global bullion prices by over 20%. The bank believes that Beijing tends to slow its purchases after sharp rallies and increase buying after sell-offs, which reduces volatility and supports gold's long-term upward trend.\n\nIn critical metals, China's dominance has been used to control the market, flooding overseas markets with low-cost exports and depressing prices below production costs of foreign rivals. This has led to the competitors exiting the market and severe shortages and price spikes in countries outside China. The investment bank warns that investors should include critical metals, not just energy, in broad inflation hedges, as Beijing's policies are more likely to cause volatility in metals markets. The analysts also recommend gold as an attractive entry point, anticipating \"re-accelerating central bank gold demand\" led by China, which could help offset near-term downside pressure from energy and interest-rate markets.",
  "summary": "China’s outsize footprint in global commodities is helping to cushion international energy shocks and stabilise gold prices, even as its export controls on rare earths and other critical minerals trigger violent price swings in the Western technology supply chain, according to Goldman Sachs. In a report published on Monday, commodities analysts Daan Struyven and Lia Thomas cast Beijing as the…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}