China’s Gold-Buying Streak Continues
The People’s Bank of China (PBOC) has continued its gold-buying streak, extending it to 13 straight months with a purchase of 30,000 troy ounces (0.93 tons) in November. This accumulation effort, which began in November 2024, is part of China’s strategy to diversify its foreign reserves and reduce reliance on the U.S. dollar. By offering to store gold for other central banks, China is positioning itself as a growing hub in the international bullion ecosystem, in line with Beijing’s broader financial ambitions to bolster confidence in alternative reserve mechanisms outside Western institutions.
China’s Growing Gold Reserves
The PBOC’s total holdings have reached 74.12 million troy ounces (2,305.6 tons), maintaining its role as one of the leading central banks in global gold reserves. This increase in gold reserves is a significant move by China to reduce its dependence on the U.S. dollar and to promote the use of alternative currencies.
Global Central Bank Gold Buying on the Rise
Meanwhile, data from the World Gold Council shows that global central bank purchases picked up in October following a mid-year slowdown. Net buying reached 53 tons during the month, the highest monthly total in 2025. Cumulative official sector purchases between January and October stood at 254 metric tons. Emerging market central banks, particularly those in Brazil, Poland, Uzbekistan, and Türkiye, were the main drivers of October’s demand.
Why Central Banks Are Buying Gold
Gold continues to serve as a hedge against currency risks, particularly in the context of persistent geopolitical tensions, global trade disputes, and concerns over the long-term value of fiat currencies. As central banks in advanced and emerging economies increase monetary expansion and sovereign debt levels, investors increasingly view gold as protection against potential currency debasement and the erosion of purchasing power.
Gold Prices Remain Strong
Gold prices have remained elevated in recent months, consolidating above the $4,000 per ounce level after retreating from an October peak near $4,400. The resilience is largely driven by investor expectations that the U.S. Federal Reserve will cut interest rates at its next policy meeting, which would bring the benchmark rate down to 3.50–3.75%. The prospect of lower borrowing costs has added to surging demand, pushing prices back above $4,200 per ounce after two weeks.
Conclusion
In conclusion, China’s gold-buying streak is a significant move to diversify its foreign reserves and reduce reliance on the U.S. dollar. The increase in global central bank gold buying, particularly among emerging market central banks, highlights the growing importance of gold as a hedge against currency risks. With gold prices remaining strong and expected to continue rising, it is likely that central banks will continue to buy gold as a way to protect their reserves and promote financial stability. As of the December 5 close, gold has already posted its second-best annual performance since 1979 in 2025, with gains approaching 60% since January.
