Beijing: In a sustained and deliberate push to fortify its financial bulwarks, China’s central bank has continued to amass gold for the fifteenth month in a row, according to newly released data from the People’s Bank of China (PBOC). This extended accumulation streak highlights Beijing’s strategic emphasis on diversifying its foreign reserves amid persistent global economic uncertainty.
China’s official gold holdings climbed to approximately 74.19 million fine troy ounces by the end of January, a modest increase from 74.15 million ounces in December. However, the value of those reserves grew markedly, rising to around $369.58 billion from about $319.45 billion in the previous month a substantial gain driven mainly by sharply higher gold prices.
For the PBOC, gold serves as more than a commodity it is a cornerstone of risk management and reserve diversification. Central banks traditionally hold gold to buffer against currency volatility, geopolitical tensions, and shocks in global financial markets. In China’s view, bolstering gold holdings helps enhance the resilience of its foreign exchange reserves and reduce reliance on traditional reserve assets such as the U.S. dollar.
The latest data come against a backdrop of significant fluctuations in global gold prices. In January, speculative trading pushed spot gold near an all-time high of about $5,600 per ounce, although prices later dipped following shifts in U.S. monetary policy expectations after the nomination of Kevin Warsh as the next Federal Reserve chair. Gold was trading around $4,960 per ounce at the start of February.
While China’s official reserve accumulation has gained momentum, overall gold consumption within the country has softened. Data released earlier this week indicate that nationwide gold use including jewelry, industrial, and other segments fell for the second consecutive year in 2025, declining roughly 3.75% to about 950 metric tons. However, demand for investment-oriented products like gold bars and coins surged, rising more than 35% and accounting for over half of total consumption. This pattern reflects heightened safe-haven sentiment among Chinese investors amid broader market uncertainties.
China’s current gold buying spree follows a previous extended run that began in late 2022 and lasted through mid-2024. After pausing purchases in May 2024 following 18 months of continuous acquisitions, the central bank resumed bullion buying six months later, initiating the present streak that now spans fifteen months.
Analysts note that this measured accumulation reflects long-term reserve strategy rather than opportunistic market timing, even as gold prices have experienced volatility. By maintaining a systematic approach, China is positioning its reserves to better withstand future market jolts and global economic shifts.
China’s behavior aligns with a wider pattern of persistent gold buying by central banks worldwide. According to international data, official sector demand for gold remained robust through 2025, with many emerging market and advanced economy reserve managers increasing holdings to diversify portfolios and hedge against currency risks.
As Beijing continues this strategy, observers say that gold will likely remain a key pillar of its reserve architecture not just as a financial asset, but as a strategic instrument for long-term economic stability.