Eseandre Mordi
⬤ China's gold reserve buildup rolled into its 16th consecutive month in February, with the People's Bank of China adding another 1 tonne of bullion. The move keeps a pattern intact that now spans well over a year, with gold's share of China's total foreign exchange reserves climbing to roughly 10% - nearly double what it was just 20 months ago.
⬤ Across this 16-month run, China has accumulated 50 tonnes in total, pushing official reserves to a record 2,309 tonnes. Monthly volumes are smaller than the aggressive pace seen during parts of 2022 through 2024, but the direction has not changed. February's addition, however modest, confirms the trend is still active.
Gold's share of China's reserves has roughly doubled over the last 20 months -- a quiet but deliberate shift in how the country holds its wealth.
⬤ This is not the first time China has sustained a streak like this. A previous buying run lasted 18 straight months between 2022 and 2024, placing the current phase within a broader, long-term pattern. At gold prices near $5,000 per ounce, China's 2,309-tonne position is valued at approximately $371 billion - a figure that underscores just how significant the accumulation has become.
⬤ With gold now holding a near-10% share and total tonnage at a record, XAU is playing a more central role in China's reserve mix. The shift reflects a broader move by central banks away from traditional paper assets, with physical gold increasingly seen as the preferred alternative.
Eseandre Mordi
