Feb 7 (Reuters) – China’s central bank extended its gold buying spree for a 15th month in January, data from the People’s Bank of China (PBOC) showed on Saturday.
The country’s gold holdings rose to 74.19 million fine troy ounces by the end of January, up from 74.15 million the previous month.
The value of China’s gold reserves increased to $369.58 billion at the end of last month from $319.45 billion a month earlier, according to the PBOC.
Gold, long seen as a safe-haven asset to hedge against political and economic risks, saw a wild run in a speculative buying spree in January that took it to a record near $5,600 per ounce.
But the bull run in spot gold quickly fell apart after the nomination of Kevin Warsh as the next chair of the U.S. Federal Reserve at the end of January, plunging as low as $4,403.24 per ounce on Monday.
Gold is now being traded at around $4,960 an ounce.
China’s gold consumption dropped for a second consecutive year in 2025, however, dipping 3.75% to 950 metric tons, the state-backed China Gold Association has said.
But purchases of gold bars and coins, representing safe-haven demand, have jumped for a second year, to stand up 35.14% in 2025, and account for more than half of total gold consumption.
The PBOC halted an 18-month-long gold buying streak in May 2024, but resumed purchases six months later.
(Reporting by Lewis Jackson, Dylan Duan and Ellen Zhang; Editing by Clarence Fernandez)
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