China Adds More Gold in December, Pushing 2025 Purchases Near 27 Tonnes and Reserves to 2,306 Tonnes
China Adds More Gold to Reserves as Central Bank Buying Continues in 2025
China’s central bank has added more gold to its national reserves, reinforcing a long-term strategy that global analysts increasingly view as a hedge against geopolitical risk and currency volatility.
According to the latest disclosure, the People’s Bank of China added 1 tonne of gold in December, bringing its total gold purchases in 2025 to nearly 27 tonnes. With the latest addition, China’s official gold reserves now stand at approximately 2,306 tonnes, placing the country among the world’s largest sovereign holders of the precious metal.
The information was confirmed by the X account Whale Insider, which regularly tracks movements in central bank assets and global macro trends. The Nyohoka Crypto editorial team has independently cited the report as part of its ongoing coverage of monetary policy shifts and global reserve strategies.
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| Source: XPost |
A Steady Accumulation Strategy
China’s December gold purchase may appear modest in isolation, but analysts say it fits a broader and deliberate pattern. Over the past several years, Beijing has consistently increased its gold holdings, often through incremental monthly additions rather than large, market-disruptive buys.
This approach allows China to strengthen its reserve position without triggering sharp movements in global gold prices. Market participants note that central banks often prefer this method to avoid signaling intentions too aggressively to traders.
The near-27-tonne increase recorded in 2025 underscores that gold remains a strategic priority for Chinese policymakers, even as the country manages slower domestic growth and ongoing trade and technology tensions with Western economies.
Why Gold Still Matters to China
Gold occupies a unique role in China’s reserve framework. Unlike U.S. Treasuries or other foreign assets, gold carries no counterparty risk and is not directly tied to another nation’s political or financial system.
Economists say this is particularly relevant at a time when global reserves are becoming more politicized. Sanctions, asset freezes, and payment system restrictions have reshaped how countries think about reserve safety.
By increasing gold holdings, China is effectively diversifying away from dollar-denominated assets while maintaining a store of value that is globally recognized and highly liquid.
While gold still represents a smaller share of China’s total reserves compared to foreign exchange holdings, the trend points to a gradual rebalancing rather than a sudden shift.
Central Banks Drive Global Gold Demand
China is not alone in its gold-buying strategy. Central banks worldwide have been among the strongest sources of gold demand in recent years. According to industry data, official sector purchases have remained elevated as policymakers seek to protect reserves from inflation, currency swings, and geopolitical shocks.
Emerging market central banks, in particular, have led this trend. Many of them view gold as a way to reduce dependence on the U.S. dollar without fully exiting the existing global financial system.
China’s continued accumulation reinforces its role as a key driver of this structural demand, providing long-term support for gold prices even during periods of market volatility.
December Purchase Sends a Subtle Signal
The timing of the December addition is also noteworthy. Year-end reserve adjustments often reflect strategic positioning for the year ahead. By closing 2025 with another increase in gold holdings, China signals that its long-term outlook remains cautious.
Analysts say the move suggests Beijing expects continued uncertainty in global markets, including potential interest rate shifts, trade disputes, and currency realignments.
Rather than making bold policy announcements, China’s central bank has allowed its actions to speak quietly through consistent data releases.
Impact on Global Markets
For gold markets, incremental buying by major central banks like China provides a steady underpinning for prices. While speculative flows and retail demand can drive short-term swings, official sector purchases tend to be patient and price-insensitive.
Traders closely watch monthly reserve data for clues about future demand trends. Even small additions by large holders can influence market sentiment, especially when combined with similar actions by other central banks.
In foreign exchange markets, China’s gold accumulation is often interpreted as part of a broader diversification strategy rather than an immediate challenge to the dollar’s dominance. Still, over time, such moves contribute to gradual shifts in the global reserve landscape.
China’s Gold Reserves in Global Context
With total gold reserves now around 2,306 tonnes, China ranks among the world’s top holders, though it still trails the United States and several European nations in absolute terms.
However, analysts note that gold represents a smaller percentage of China’s total reserves compared to Western economies. This leaves room for further accumulation if policymakers choose to continue rebalancing.
Some economists argue that China’s true gold holdings could be higher than officially reported, pointing to domestic production and opaque reserve management practices. Beijing has historically updated its official figures intermittently rather than in real time.
Strategic Patience Over Dramatic Moves
One defining feature of China’s reserve policy is patience. Rather than abrupt reallocations, the central bank has favored gradual adjustments that minimize market disruption.
This approach aligns with Beijing’s broader economic strategy, which prioritizes stability and long-term planning over short-term market reactions.
By adding just 1 tonne in December, the central bank avoided drawing excessive attention while still reinforcing its commitment to gold accumulation.
A Quiet but Powerful Trend
While the December purchase may not dominate headlines on its own, it forms part of a powerful and ongoing trend in global finance. Central banks, led by countries like China, are reshaping reserve strategies in response to a more fragmented and uncertain world.
For investors and policymakers alike, these moves offer valuable insight into how major economies are positioning themselves for the future.
As 2026 approaches, market watchers will continue to monitor China’s monthly reserve data for further clues about its long-term intentions.
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