China Continues Gold Buying Spree, Marks 10-Month Streak

China’s central bank, the People’s Bank of China (PBOC), has extended its gold purchasing streak to 10 consecutive months, adding 2 tons in August 2025, bringing total reserves to 2,302 tons, or 7% of its $3.6 trillion foreign exchange reserves, according to the World Gold Council. This methodical accumulation, totaling 21 tons in 2025, underscores China’s strategy to diversify away from the U.S. dollar amid global economic uncertainty and geopolitical tensions.

Since November 2024, the PBOC has added roughly 34.2 tons of gold, with monthly purchases averaging 60,000–80,000 ounces, valued at approximately $1.2 billion at current prices. This follows a six-month pause after an 18-month buying spree ending in 2024, during which China acquired 225 tons, making it the world’s top central bank buyer in 2023. Gold prices, up 30% in 2025 to over $3,500 per ounce, have been supported by this demand, despite occasional fluctuations, as reported by Business Today.

China’s strategy aims to hedge against inflation, currency volatility, and potential sanctions, with gold serving as a non-sovereign asset. Analysts at Goldman Sachs note that central bank buying, including China’s, supports a price floor, with global purchases expected to hit 1,000 tons in 2025. However, China’s gold imports dropped 62% to 323 tons in the first half of 2025, reflecting weaker jewelry demand due to high prices.

This persistent accumulation signals confidence in gold as a safe-haven asset, potentially encouraging other nations and investors to bolster their holdings. As China, the sixth-largest gold reserve holder, eyes a larger share relative to its economic status, its actions could reshape global gold markets and reinforce financial stability.