China is betting heavily on gold: record monthly purchases amid unstable markets.

China is betting heavily on gold, recording record monthly purchases while markets remain unstable. The country appears increasingly attracted to gold, making a decisive move to accumulate this strategic safe-haven asset. The government led by Xi Jinping recently reported its largest monthly gold purchase in the past year, confirming a steady trend of strengthening reserves.

The People’s Bank of China (PBoC) increased its reserves by approximately 160,000 troy ounces in March, reinforcing its role as a consistent buyer in the global precious metals market. This occurs in a context of significant geopolitical instability and shifting interest rate expectations—factors that make gold particularly attractive to central banks.

According to official data, China’s gold reserves rose to 74.38 million troy ounces, highlighting an accumulation strategy aligned with economic policy objectives and the diversification of foreign exchange reserves, despite recent weakness in precious metal prices.

China continues to view gold as a safe-haven asset. These transactions took place during a period of high turbulence in global markets. In March, the price of gold fell by about 12%, marking its worst monthly performance since 2008. The decline was influenced by a strengthening US dollar, partly driven by tensions related to the conflict in Iran, and by rising expectations of tighter monetary policy from the Federal Reserve, which reduced gold’s short-term appeal.