The People's Bank of China continued its gold accumulation strategy in January, with holdings reaching 74.19 million fine troy ounces. The value of China's gold reserves surged to $369.58 billion from $319.45 billion in December, reflecting the strong rally in gold prices. Gold now accounts for approximately 9% of China's total reserves as part of its diversification strategy away from US dollar-denominated assets. This move is part of China's ongoing de-dollarization efforts and broader strategy to reduce dependence on the US dollar while strengthening its position in global markets. Gold prices are currently trading at around $5,000 per ounce, up 17% year-to-date, supported by strong central bank demand and global commodities momentum driven by AI infrastructure buildout.
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