China central bank keeps buying gold as bull run hits brakes

[BEIJING] China’s central bank extended its gold-buying streak to 15 months, underscoring resilient official demand as bullion’s record-breaking rally was hit by a sharp market sell-off late last month.

Bullion held by the People’s Bank of China rose by 40,000 troy ounces last month, according to data released on Saturday (Feb 7). The central bank began its latest round of buying the precious metal in November 2024.

Waves of speculative interest pushed gold and silver to successive peaks in January, before a historic rout late in the month. Prices have since staged a partial recovery, though markets remain unsettled as investors reassess positioning after the rout.

Global central bank buying – a key structural pillar of the market – rose in the final quarter of 2025, lifting full-year purchases to over 860 tonnes, according to World Gold Council. While that fell short of the more than 1,000 tonnes acquired annually over the past three years, demand is likely to remain elevated, reinforcing gold’s role in official reserves, according to WGC. BLOOMBERG