China is the biggest whale in the markets. When it moves around the ocean, it leaves a very big wake in the ocean of the markets.
China has stopped buying treasuries and decided to place its currency reserves into gold. Note that treasuries have been losing value lately despite new Japanese purchases, and also pay attention to the gold price. Even though their have been outflows from gold ETFs and investors have stopped adding to their positions, the price seems to levitate. Now we know why.
If the price of gold remains high, then China has smartly diversified its reserves. However, if it is the biggest buyer in the market, maybe it is distorting the price higher to its own detriment.
A country stockpiling gold during a market peak is just like a corporation buying back its stock during a bull market. When prices eventually come down, it will wish it had that money back.