China Keeps Stacking Gold

China added to its gold reserves again in January, marking fifteen consecutive months of official buying. At this point, it is difficult to see the pattern as anything other than deliberate policy.

The People’s Bank of China reported holdings of around 74.19 million fine troy ounces by the end of last month, up from roughly 74.15 million in December. The reported value of those reserves also rose by about US$370 billion, reflecting both additional purchases and gold’s strength earlier in the year.

While the month-to-month increase looks modest on paper, the consistency is what stands out. China has now been adding gold almost uninterrupted for well over a year, even as global financial markets swing between optimism and unease. It is also worth recalling, as we have discussed previously, that China is widely believed to underreport its gold purchases. Estimates from organisations such as the World Gold Council suggest its true holdings could be materially higher.

Volatility has returned in parts of the market, equity valuations sit near historical extremes, and investors are continually reassessing their exposure to policy risk, rising debt burdens, geopolitics, and signs of slowing growth. These are likely among the reasons China continues to accumulate physical gold.

This matters because central banks have become one of the key pillars of the gold market. Their buying has provided a steady source of underlying support, even during periods when speculative interest fades or prices pull back.

January offered a clear example of this dynamic. Gold pushed to record levels earlier in the month on a mix of macro uncertainty and positioning, before retracing some of those gains as traders took profits. Even so, prices have remained well above levels that would have seemed extraordinary just a few years ago, with dip buying still evident.

Pullbacks will occur. Gold has never moved in a straight line. But the broader trend remains intact, and many in the market continue to see this bull cycle extending into 2026.

When some of the world’s largest central banks quietly add to their gold reserves month after month, it sends a signal. They are preparing for a future that appears less stable, more fragmented, and more uncertain than the one investors became accustomed to during the era of cheap money.