KEY POINTS
- The People’s Bank of China added to its gold reserves for the 15th straight month in January.
- Total bullion holdings at the central bank have reached a new record of 72.8 million fine troy ounces.
- Beijing is continuing its long-term strategy to diversify national reserves away from the U.S. dollar.
China’s central bank has once again increased its gold stockpiles, marking a significant milestone in its reserve strategy. The People’s Bank of China (PBOC) reported fresh purchases for January 2026. This move extends an unbroken buying streak that began over a year ago.
Official data shows that the PBOC added roughly 210,000 troy ounces of gold last month. This consistent accumulation highlights China’s commitment to strengthening its financial safety net. Global markets are closely watching these monthly updates as a sign of shifting economic priorities.
The total value of China’s gold reserves has climbed alongside rising global prices. Gold now accounts for a larger share of the country’s total foreign exchange reserves than in previous years. Analysts believe this trend will continue as geopolitical tensions persist.
One primary motivation for this steady buying is a desire to reduce reliance on the U.S. dollar. By holding more gold, China aims to insulate its economy from potential sanctions or dollar-based volatility. This strategy is part of a broader global movement among emerging economies.
The 15-month buying spree has provided a solid floor for international gold prices. Even when interest rates fluctuated, China’s constant demand helped maintain market stability. Other central banks in Asia and the Middle East are reportedly following Beijing’s lead.
Despite the recent purchases, gold still makes up a small percentage of China’s total $3.2 trillion in reserves. Most of China’s holdings are still in foreign currencies and government bonds. However, the consistent pivot toward bullion signals a major long-term policy shift.
The PBOC remained the world’s largest official buyer of gold throughout 2025. This aggressive acquisition comes as China seeks to boost the international status of the yuan. A larger gold reserve is often seen as a way to build global confidence in a national currency.
Domestic demand for gold in China also remains exceptionally strong among retail investors. Economic uncertainty and a cooling property market have pushed individuals toward the precious metal. Jewelry sales and gold bar investments reached multi-year highs during the Lunar New Year.
Global gold prices reached record levels several times during this 15-month period. China’s central bank appears undeterred by these high costs, focusing instead on long-term security. Experts suggest that the PBOC may continue buying until gold reaches a specific target percentage of its reserves.
Financial analysts warn that continued heavy buying by central banks could tighten global supply. As mines struggle to keep up with demand, prices may face further upward pressure. China’s transparent reporting of these figures remains a key driver of market sentiment.
For now, the PBOC shows no signs of pausing its accumulation program. Monthly data releases continue to be a focal point for bullion traders and currency strategists alike. The world’s second-largest economy is clearly betting on the enduring value of gold.
