China Increases Gold Reserves Amid Rising Global Demand

China’s gold reserves experienced an increase by the end of December, reaching 73.29 million troy ounces, up from 72.96 million troy ounces in November. Despite this rise in reserves, the total value of China’s gold holdings decreased from $193.43 billion in November to $191.34 billion in December, primarily due to fluctuations in gold prices.

After a six-month hiatus, the People’s Bank of China resumed gold purchases in November, adding 5 tons to its reserves. This brought the total gold holdings to 2264 tons, which now represent about 5% of the country's total reserves. China’s net gold purchases for the year have reached 34 tons.

This trend highlights the increasing global demand for gold as a safe reserve asset. Central banks worldwide have been net buyers of gold for the fifteenth consecutive year, underscoring its growing significance in the global financial system. This surge in gold demand comes at a time of economic and geopolitical volatility that characterized 2024.

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