China continued to increase its gold reserves in February, extending its buying streak to 16 consecutive months, reflecting Beijing’s ongoing strategy to strengthen its holdings of the precious metal amid heightened geopolitical risks and rising prices.
According to data released by the People's Bank of China, the country’s gold holdings increased by 30,000 troy ounces last month, bringing total reserves to 74.22 million troy ounces. The accumulation cycle began in November 2024.
Gold regains momentum
Despite recent market volatility, gold has regained strong momentum in recent weeks, surpassing the $5,000-per-ounce level. The rally has been driven by increased demand for safe-haven assets following the U.S.–Israeli attack on Iran, which intensified geopolitical risks in the Middle East.
Central bank purchases slow slightly
Meanwhile, the World Gold Council noted a slowdown in global central bank gold purchases at the start of the year. According to a recent note, net gold purchases in January totaled just 5 tonnes, compared with a 12-month average of 27 tonnes.
Marissa Salim, a research analyst at the council, said that gold price volatility and the holiday season may have prompted some central banks to pause their buying temporarily.
She added that persistent geopolitical tensions, which show little sign of easing, are likely to keep central banks accumulating gold throughout 2026 and beyond.
Sales remain limited despite some discussions
Although some countries have recently considered reducing their gold holdings, purchases continue to outweigh sales. The governor of the central bank of Poland—the world’s largest publicly reported gold buyer—has proposed selling part of the country’s gold reserves to finance defense spending.
Meanwhile, both Russia and Venezuela have sold portions of their gold reserves in recent months, though the broader trend among central banks still points toward continued accumulation rather than liquidation.
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