China’s central bank continued its steady gold purchases in December, marking the 14th straight month of additions to its reserves. The move highlights Beijing’s long-term strategy to diversify foreign assets as global economic risks remain high and gold prices hover near record levels.
Data released in early January show the People’s Bank of China increased its gold holdings again at the end of 2025. Although the monthly rise was modest, the consistent pace underscores China’s commitment to bullion despite elevated prices.
PBOC Builds Gold Reserves Through 2025
By the end of December 2025, China’s gold reserves reached about 74.15 million troy ounces, up slightly from November. This marked another month of net buying and capped a year of steady accumulation.
Over the full year, China added an estimated 860,000 ounces of gold. This trend suggests the central bank views gold as a core reserve asset rather than a short-term trade. Analysts say the strategy reflects caution as global markets face policy shifts, slowing growth, and ongoing geopolitical tensions.
Strategic Reasons Behind China’s Gold Push
Gold continues to play a key role as a store of value during uncertain times. For China, steady accumulation supports broader financial and policy goals.
Key drivers behind the buying trend include:
- Reducing dependence on dollar-denominated assets
- Hedging against currency volatility
- Strengthening long-term reserve stability
- Aligning with global central bank diversification trends
Furthermore, central banks worldwide have remained net buyers of gold, helping support prices and reinforcing bullion’s importance in official reserves.
China’s ongoing gold purchases send a clear message to global markets. Even at high prices, Beijing appears focused on long-term financial security rather than short-term cost concerns. If prices remain elevated, buying could slow, but analysts expect accumulation to continue.
For investors, including those in cryptocurrency markets, the trend highlights growing interest in hard assets during periods of uncertainty. While gold and digital assets behave differently, both often attract attention when confidence in traditional systems weakens.
