China Buys 40,000 Ounces Gold in January Boosting Reserves

The People’s Bank of China (PBOC) has added 40,000 troy ounces of gold to its reserves in January 2026. This constitutes a continuation of a buying streak, as the PBOC builds its holdings, now at 74.19 million troy ounces.

The PBOC is the key institution in this action, overseeing China’s foreign exchange reserves which reached $3.3991 trillion. This increase reflects a significant ongoing de-dollarization effort by China, focused on enhancing economic resilience.

The addition of gold has had minimal direct impacts on the crypto sector due to the lack of overlap with digital assets. The focus remains on conventional markets, highlighting traditional strategies in asset management. Financial implications include increased stability in gold prices and forex market adjustments. Political perspectives suggest a cautious diversification of reserves amid broader tensions, with no immediate crypto market interplay visible in trading dynamics.

Although gold prices peaked at approximately $5,600 per ounce, they have now settled at around $4,960. The PBOC’s move reflects a broader trend among nations to diversify reserves. PBOC’s gold buying might influence global monetary policy decisions and reserve management strategies. Historical trends show consistent acquisitions over the past year, supporting a strategic hedge against economic uncertainties and tumultuous markets.

“China’s central bank is continuing its long-term strategy of de-dollarization by hoarding gold, which often signals growing economic resilience.” — Noah Smith, Economist and Writer