China Central Bank Extends Gold Buying Streak to 15 Straight Months

Post by : Saif Nasser

China’s central bank has added more gold to its reserves for the 15th month in a row, showing a steady and careful strategy to strengthen its financial safety base. New data from the People’s Bank of China (PBOC) shows that the country continued its gold purchases in January, even as global gold prices saw sharp ups and downs.

According to the latest official figures, China’s gold holdings rose slightly to 74.19 million fine troy ounces at the end of January. In December, the total stood at 74.15 million ounces. While the monthly increase may look small, the long buying streak is what matters most to market watchers. It signals that China is committed to building its gold reserves over time instead of making sudden large purchases.

The total value of China’s gold reserves also jumped strongly. At the end of January, the value reached about $369.58 billion, up from $319.45 billion just one month earlier. This rise was not only because of extra buying, but also because gold prices moved higher during parts of the month.

Gold is often called a “safe-haven” asset. This means investors and governments tend to buy it when they are worried about economic trouble, political risk, or currency weakness. Unlike paper money, gold cannot be printed by central banks. That is why many countries keep gold as part of their foreign exchange reserves.

January was a very volatile month for gold prices. During a wave of heavy speculative buying, gold prices climbed rapidly and touched a record level near $5,600 per ounce. Many traders rushed into the market, hoping prices would continue to rise. However, that rally did not last long.

Prices later fell sharply after news about a new nomination for the next chair of the U.S. Federal Reserve. Market expectations about future U.S. interest rate policy changed quickly, and gold dropped to near $4,403 per ounce at one point. After that fall, prices recovered somewhat and have recently been trading around $4,960 per ounce.

These fast price swings show that gold can be both a safe asset and a volatile one in the short term. For central banks like China’s, the focus is usually long term. They are less concerned about weekly price changes and more focused on stability over many years.

China’s recent gold buying also stands out because overall gold consumption inside the country has actually fallen. Data from the China Gold Association shows that total gold use dropped for the second year in a row in 2025, falling about 3.75% to 950 metric tons. This means less gold was used in jewelry and other general purchases.

At the same time, demand for gold bars and coins has risen strongly. Purchases of these investment-style products jumped more than 35% in 2025 and made up more than half of total gold consumption. This suggests that many private buyers in China are also turning to gold for safety and savings, not just decoration.

China’s central bank had earlier paused its gold buying after an 18-month run that ended in mid-2024. That pause lasted about six months. When purchases restarted, they continued steadily month after month, leading to the current 15-month streak.

From a policy point of view, regular gold buying helps a country diversify its reserves. Most central banks hold a mix of assets such as foreign currencies, government bonds, and gold. By increasing the share of gold, a country reduces its dependence on any single currency. This can offer protection during times of currency market stress or geopolitical tension.

China’s continued buying will likely keep global investors alert. When a major central bank adds gold consistently, it sends a message about caution and preparation. It also supports long-term demand in the global gold market.

In the bigger picture, the move shows how central banks are adjusting their reserve strategies in an uncertain world. With shifting interest rates, changing trade patterns, and ongoing political risks, gold remains an important anchor asset. China’s steady approach suggests it sees gold not as a short-term trade, but as a long-term shield.