China increases gold reserves to mitigate geopolitical and financial risks

gold reserves People’s Bank of China central bank buying financial diversification geopolitical risk

The People’s Bank of China (PBOC) has increased its gold reserves for 23 consecutive months, with a reported purchase of approximately 23 tonnes in September. This represents the central bank’s largest monthly acquisition in nearly three years, bringing total reported holdings to roughly 2,410 tonnes. Gold now accounts for 8.5 percent of China’s total official reserves, up from 5.5 percent at the end of 2024.

Analysts suggest this strategy aims to reduce dependence on US dollar-denominated assets and mitigate geopolitical risks. The move follows precedents such as the freezing of Russian foreign exchange reserves by Western governments, which highlighted the vulnerability of assets held abroad. By storing gold domestically, China can protect its reserves from foreign sanctions and the influence of Washington and its allies.

In addition to central bank activity, domestic demand for gold is rising among Chinese households and private investors. This surge is driven by economic uncertainty, including volatility in the property market and financial assets, as individuals seek stable stores of wealth.

Entities

China · People’s Bank of China · World Gold Council

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] Central banks are increasing gold reserves to reduce dependence on G7 reserve currencies. www.infomoney.com.br
[○ 1 SOURCE] China acquired approximately 25 tons of gold in August. www.infomoney.com.br
[○ 1 SOURCE] Gold futures for December closed at $4,150.00 per troy ounce. tnonline.uol.com.br
[○ 1 SOURCE] Central banks purchased 79 tons of gold in August. www.infomoney.com.br
[○ 1 SOURCE] Monthly gold purchases are currently averaging about 85 tons when adjusted for seasonality. www.infomoney.com.br