China Buys Gold 16 Months Running at Prices Above $5,000

GFN – BEIJING: China’s central bank extended its gold-buying streak to 16 consecutive months in February, adding modestly to reserves as bullion trades above $5,000 per ounce amid escalating geopolitical tensions in the Middle East. Official data show holdings rising to 74.22 million fine troy ounces, bought between $4670 and $5270 in the month of February, reinforcing Beijing’s ongoing reserve diversification strategy.

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Data released Saturday showed the People’s Bank of China (PBOC) increased its gold reserves by roughly 30,000 troy ounces in February, bringing total official holdings to 74.22 million ounces. The latest addition continues a renewed accumulation cycle that began in November 2024, extending China’s steady official-sector demand for bullion.

 

China’s gold purchases come as global markets respond to intensifying conflict in the Middle East. Bullion prices recently recovered above $5,000 per ounce, with investors seeking defensive assets after U.S. and Israeli strikes on Iranian targets increased geopolitical uncertainty.

China’s reserve accumulation has unfolded in multiple phases. Prior to the current cycle, the PBOC reported 18 consecutive months of gold purchases through April 2024, before pausing and then resuming accumulation in November 2024, which has now continued for 16 months.

The value of China’s official gold holdings has risen alongside the metal’s price rally. At the end of February, the market value of PBOC gold reserves was estimated at approximately $387.6 billion, up from $369.6 billion the previous month.

“Volatile gold prices and the holiday season may have given some central banks pause.”

“Though geopolitical tensions, which have shown little sign of abating, are likely to keep accumulation going through 2026 and beyond.”

The comments were made by Marissa Salim of the World Gold Council, who noted that while short-term price volatility may slow official-sector buying, geopolitical risk continues to underpin long-term demand.

 

While China continues to add bullion,

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