China’s central bank continued to add to its gold reserves in January, extending its buying streak to a fifteenth consecutive month, according to data released by the People’s Bank of China, underscoring Beijing’s sustained push to bolster its bullion holdings despite sharp volatility in global gold markets.
The PBOC said China’s gold holdings rose to 74.19 million fine troy ounces by the end of January, up slightly from 74.15 million ounces a month earlier. The value of those reserves surged far more dramatically, climbing to $369.58 billion from $319.45 billion in December, reflecting the impact of soaring gold prices rather than a large increase in physical volumes.
Gold prices experienced a turbulent January, driven by a speculative buying spree that pushed the metal to a record high near $5,600 per ounce. Long regarded as a safe-haven asset during periods of political and economic uncertainty, gold attracted strong investor interest before the rally abruptly reversed. Prices plunged after the nomination of Kevin Warsh as the next chair of the US Federal Reserve late in the month, briefly falling to around $4,403 per ounce before stabilizing near $4,960.
China’s steady accumulation comes even as domestic gold consumption shows mixed trends. Overall gold consumption in the country fell for a second consecutive year in 2025, dropping 3.75% to 950 metric tons, according to the state-backed China Gold Association. The decline suggests softer demand for jewelry and industrial uses amid economic headwinds.
At the same time, purchases of gold bars and coins have surged, rising 35.14% in 2025 and now accounting for more than half of total gold consumption. The increase highlights strong safe-haven demand among Chinese investors seeking protection from market volatility and broader economic uncertainty.
The PBOC’s current buying run follows a brief pause last year. After accumulating gold for 18 straight months, the central bank halted purchases in May 2024, only to resume buying six months later. The renewed and sustained accumulation has reinforced gold’s growing role in China’s reserve strategy as Beijing looks to diversify assets and hedge against external financial risks.
