China’s central bank has extended its gold buying streak to a 16th consecutive month, pushing total reserves to a record 2,309 tonnes as of the end of February 2026, according to official data released in early March.

The People’s Bank of China (PBOC) added roughly one tonne of gold during the month, bringing its holdings to approximately 74.22 million fine troy ounces. The steady accumulation reflects a broader strategy to strengthen reserve diversification amid rising geopolitical and economic uncertainty.

Sustained Accumulation Signals Strategic Shift

Since resuming purchases in November 2024, China has added an estimated 44 tonnes of gold to its reserves. Over that period, gold’s share of the country’s total foreign exchange holdings has risen to around 10%, marking a significant shift in reserve composition.

China’s total foreign exchange reserves stand at roughly $3.9 trillion, meaning gold remains a relatively small but increasingly important component of its overall holdings.

The value of its gold reserves has climbed to about $387.6 billion, driven not only by continued buying but also by rising global gold prices.

Hedging Against Global Uncertainty

Analysts say the sustained purchases reflect Beijing’s effort to reduce reliance on US dollar-denominated assets while strengthening its position against global volatility.

Gold is widely viewed as a hedge against inflation, currency fluctuations, and geopolitical risk; factors that have intensified in recent months due to ongoing tensions in the Middle East and broader shifts in the global economic landscape.

China’s approach aligns with a wider trend among central banks, many of which have increased gold holdings in recent years as part of long-term reserve diversification strategies.

Impact on Global Gold Markets

Persistent buying by central banks—particularly large economies like China—has provided structural support for gold prices, helping offset short-term market fluctuations.

While global central bank purchases moderated slightly compared to peak levels in previous years, demand remains historically strong. China continues to stand out as one of the most consistent buyers, reinforcing expectations that official-sector demand will remain a key driver of the gold market.

Domestic demand within China has also remained robust, with both retail and institutional investors increasing gold purchases, further supporting price stability.

A Broader Shift in Reserve Strategy

China’s continued accumulation underscores a long-term policy direction that prioritizes resilience and diversification in its financial system. As global risks evolve and traditional reserve assets face new pressures, gold’s role as a neutral, non-sovereign store of value is becoming increasingly central to reserve management strategies.

The latest data suggests that, while incremental in pace, China’s gold buying campaign remains deliberate and far from over.

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