No, because their currency is not even free floating, much less pegged to #gold.
Discussion
The Chinese want to buy oil and commodities in yuan. They are the world's factory, so other countries can use the yuan to buy stuff from China directly. If these oil exporters have remaining yuan, they are able to either keep the yuan or settle in gold. (The Chinese exchange the yuan for gold). The currency doesn't have to be pegged to gold for it to become more credible because of China's gold holdings. Their goal is to be able to buy commodities and oil in yuan and de-dollarize Asia.
Wanting and being abe to do it are obviously different.
To make it more credible, Chinese have to make Renminbi freely convertible, remove capital controls, and create a credible sovereign debt market equal to US Treasuries.
None of that is imminent. How much CNY and Chinese government bonds are you holding, compared to USD?
Gold holdings have no direct connection to curency value or credibility, as you explained; it’s indirect, at best.
Neither is it clear how much CNY they exchange for gold, because they don’t audit their gold holdings and publicise that either.