China's PBOC Extends Gold Buying Streak to 13 Months, Reserves Reach New Milestone

China's central bank, the People's Bank of China (PBOC), continued its streak of gold buying, adding 30,000 troy ounces to its reserves in November 2025. This marked the 13th consecutive month of gold purchases, with the total reserves now standing at approximately 74.12 million troy ounces. The buying cycle began in November 2024, indicating a sustained interest in gold as a reserve asset. The PBOC's gold reserves have increased by a total of 1.04 million troy ounces since the buying cycle commenced. This represents a significant addition to the central bank's holdings, which now account for a substantial portion of China's overall gold reserves. The PBOC's decision to maintain its gold-buying program is likely driven by a desire to diversify its reserve assets and reduce reliance on foreign currencies. The gold market has experienced a notable rally in recent months, with prices rising due to a combination of factors, including central bank purchases, geopolitical tensions, and investor demand. The rally has cooled somewhat in recent weeks, but the PBOC's continued buying suggests that gold remains an attractive asset for central banks. The PBOC's gold reserves now account for approximately 2.3% of China's total foreign exchange reserves, indicating a significant allocation to gold. The PBOC's gold-buying program has implications for the global gold market, as it contributes to increased demand and potentially higher prices. This, in turn, may influence the investment strategies of other central banks and investors, as they consider the merits of gold as a reserve asset. The PBOC's actions also reflect a broader trend of central banks seeking to diversify their reserve portfolios and reduce exposure to traditional assets such as US Treasury bonds. The People's Bank of China is the central bank of China, responsible for monetary policy and the management of the country's foreign exchange reserves. The PBOC's gold reserves are held in the form of gold bars and coins, which are stored in secure vaults in Beijing. The central bank's gold-buying program is part of a broader effort to diversify its reserve assets and reduce reliance on foreign currencies. Looking ahead, the PBOC's continued gold buying is likely to have a positive impact on the gold market, contributing to increased demand and potentially higher prices. However, the extent to which the rally will continue remains uncertain, as it will depend on a range of factors, including investor sentiment, central bank actions, and global economic trends. As the global economy continues to evolve, the PBOC's gold-buying program will remain a key factor to watch, providing insights into the central bank's views on the role of gold in its reserve portfolio.