China extended its steady accumulation of gold for a 15th consecutive month in January, underscoring Beijing's long-running effort to diversify its official reserves as global financial and geopolitical uncertainty intensifies.
Data released over the weekend by State Administration of Foreign Exchange showed that China's gold reserves rose to 74.19 million ounces at the end of January, an increase of 40,000 ounces from December. While the monthly addition was modest, it marked the continuation of a buying streak that began in late 2024 and has persisted even as global gold prices have climbed to record levels.
China's central bank resumed net gold purchases in November 2024, following a pause earlier that year. Since then, official data indicate cumulative net additions of roughly 860,000 ounces during 2025 alone, pointing to a deliberate and sustained approach rather than opportunistic buying tied to short-term price moves.
Wang Qing, chief macroeconomic analyst at Orient Golden Credit Rating, said the continued purchases reflect an effort to "improve the composition" of China's foreign-exchange reserves. He noted that by the end of 2025, gold accounted for about 9.7% of China's total reserves, still well below the global average of roughly 15% held by central banks worldwide.
That gap suggests room for further accumulation. Wang said short-term price volatility is unlikely to alter the central bank's broader strategy, indicating that policymakers are focused more on long-term reserve structure than on near-term market timing.
China's gold buying has taken place against a backdrop of heightened demand for safe-haven assets globally. Gold prices have surged as investors respond to geopolitical tensions, concerns over global growth and questions about the long-term role of the U.S. dollar in international finance. Central banks across emerging markets have increased gold holdings in recent years, seeking assets that are less exposed to sanctions risk and foreign policy decisions.
The World Gold Council has described China's approach as tactical but persistent. In a recent report, the council said Beijing may have adjusted the pace of purchases as prices rose, yet the continuation of buying still points to a strategic push to diversify reserves as the overall size of China's foreign assets expands.
Gold's appeal lies in its neutrality. Unlike government bonds, it carries no credit risk and no direct exposure to another country's monetary policy. For governments wary of financial coercion, bullion offers an asset that is globally recognized and difficult to restrict through conventional sanctions.
The monthly additions themselves remain small relative to China's total reserves, which exceed $3 trillion. But analysts say the consistency matters more than the scale. Fifteen consecutive months of purchases suggest a policy choice rather than a reaction to market noise.
For Beijing, gold accumulation also carries a domestic signaling effect. Chinese policymakers have repeatedly emphasized the need to "optimize" reserve management and reduce vulnerabilities. Gold, long viewed by the public as a store of value, reinforces that narrative at a time when confidence in global financial stability is being tested.
