China adds 10 metric tons of gold in December, continuing to bolster reserves

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China continues to bolster its official gold reserves, adding approximately 10 metric tons in December, marking the second consecutive month of accumulation following a six-month pause. This move by the People’s Bank of China (PBOC) highlights the nation’s proactive strategy to enhance its financial security in the face of global economic volatility.

The PBOC’s gold holdings now stand at 73.3 million ounces, up from 73 million ounces in November. The rapid increase in gold reserves—600,000 ounces added in just two months—reflects China’s renewed confidence in gold as a strategic reserve asset. The central bank’s return to gold accumulation coincides with heightened market instability, signaling a deliberate approach to safeguarding its economic interests.

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One of the most alarming stats is China’s aggressive accumulation strategy. In just a short period, the PBOC has significantly increased its gold holdings, making it one of the largest holders globally. This surge in gold purchases underscores China’s determination to diversify its foreign exchange reserves and reduce its reliance on the U.S. dollar. The move comes as global economic conditions, geopolitical tensions, and fluctuations in gold prices have influenced financial markets.

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The most striking detail is the scale of China’s gold purchases. With its reserves now reaching 73.3 million ounces, China is reinforcing its commitment to financial stability and long-term economic resilience. This strategic accumulation is part of a broader effort to build a robust reserve portfolio, shielding against external shocks and reducing vulnerability to currency fluctuations.

Sources:

https://www.kitco.com/opinion/2025-01-07/china-expands-gold-reserves-global-economic-uncertainties-persist

https://thegoldforecast.com/gold/2025/china-expands-gold-reserves-global-economic-uncertainties-persist

https://timesng.com/china-gold-reserves-data/


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