China Continues to Increase Official Gold Purchases in 2025
In 2025, China again demonstrated its commitment to strengthening its gold reserves. The People's Bank of China (PBoC) recorded the addition of approximately 21 tons of gold throughout the year. This brings China's total gold reserves to over 2,300 tons, making it one of the largest gold reserves in the world. These gold purchases are part of China's strategy to strengthen foreign exchange reserves and diversify assets, given growing geopolitical tensions and global economic uncertainty.
China has been an active gold buyer for several years, and this trend is expected to continue. Although official data from the IMF indicates purchases of approximately 21 tons through December 2025, many analysts estimate the actual figure to be much higher. Societe Generale and several other analysts estimate that China's gold purchases on the global market could exceed 200 tons, with most purchases not recorded in official data. The World Gold Council (WGC) notes that purchases by global central banks, including China, continue to increase in response to market uncertainty and high inflation.
With China's increasing gold purchases, some market observers view this move as a strategy to reduce dependence on the US dollar and strengthen its position in the global market. Furthermore, increasingly tense geopolitical situations, such as the threat of US attacks on drug operations in Latin America and uncertainty in the energy market, are further driving demand for gold as a safe-haven asset. Gold prices continue to show positive movement, driven by concerns over global economic stability and efforts to diversify reserves by major economies.
With this trend, the global gold market increasingly views purchases by central banks, particularly China, not only as an effort to secure wealth but also as a response to ongoing economic threats and challenges. As the world's second-largest economy, China's gold purchasing policy will continue to be in the spotlight, influencing the dynamics of the global gold market going forward.
Source: Newsmaker.id
