China’s central bank has extended its gold-buying program for a tenth consecutive month, adding another 2 tonnes to its official reserves and bringing total holdings to 2,264 tonnes as of the latest reporting period, according to official data. The accumulation run, which began in late 2024, has become a major driver of global gold demand and a signal of broader de-dollarization among major central banks.
The People’s Bank of China (PBOC) is pursuing a deliberate strategy to diversify foreign exchange reserves and reduce reliance on the U.S. dollar. Official gold holdings have climbed from around 1,848 tonnes in 2019 to the current level, reflecting a structural rather than short-term shift. Similar buying by emerging-market central banks has pushed global central bank purchases above 1,000 tonnes in each of 2023, 2024 and 2025, according to the World Gold Council, with the Reserve Bank of India also among leading buyers.
Gold prices have responded strongly. Spot gold traded around $2,700 per ounce in 2025, up more than 25% year-over-year, before breaking through $2,800 resistance in early 2026 and reaching an all-time high of $2,850. Central bank purchases now account for roughly 20–25% of total global gold demand, up from historical averages of 10–15%, helping to establish a price floor.
For investors and economies, the reserve race marks a shift in global financial power dynamics. Emerging markets are asserting greater independence from Western financial systems, and gold’s role as a neutral, universally accepted reserve asset is strengthening. While some analysts caution that a pause in PBOC buying could trigger a short-term correction, the long-term trend remains tied to geopolitical tensions, currency volatility and fiscal sustainability concerns.
