PBoC: China's gold reserves at end-August at 74.02 million ounces, up from 73.96 million ounces at end-July, marking the 10th consecutive month of increase.

PBoC: China's gold reserves at end-August at 74.02 million ounces, up from 73.96 million ounces at end-July, marking the 10th consecutive month of increase.

China's gold reserves continued to climb in August 2025, reaching 74.02 million ounces, up from 73.96 million ounces at the end of July. This marks the 10th consecutive month of increase, reflecting the country's strategic diversification efforts away from U.S. dollar dominance [1].

The People's Bank of China (PBoC) has been a key player in this trend, adding 2 tonnes of gold to its reserves in August. This accumulation is part of a broader strategy to reduce exposure to the U.S. dollar and mitigate geopolitical risks. China's gold reserves now total 2,298.55 metric tons, a significant increase from 2023 levels [3].

The global context underscores China's approach. Central banks worldwide added 10 tonnes of gold to their reserves in August, although this was a slowdown compared to the second quarter. The World Gold Council noted that while central banks are sensitive to gold prices, they continue to view gold as a strategic asset [2]. This trend aligns with China's efforts to de-dollarize its reserves and enhance financial sovereignty.

China's gold purchases have been steady, with the country's gold reserves growing by 8 consecutive months since November 2024. This accumulation is not just a response to dollar depreciation but a calculated move to anchor reserves in an asset that transcends geopolitical boundaries. Gold's value has grown steadily alongside its strategic appeal, making it a compelling counterbalance to fiat currencies in a volatile global market.

The implications of this strategy are profound. By prioritizing gold, China is not only safeguarding its reserves against currency devaluation but also signaling a long-term commitment to financial sovereignty. This approach challenges the dollar's hegemony and accelerates the fragmentation of the global monetary system. For investors, the lesson is clear: diversification is no longer optional—it is existential.

As the world navigates a new era of geopolitical and monetary transition, China's playbook offers a blueprint for resilience. Gold, once a relic of the past, has been reimagined as a forward-looking asset. In the hands of a nation with the scale and ambition of China, it is not just a store of value—it is a statement of intent.

References:
[1] China Foreign Exchange Reserves, [https://tradingeconomics.com/china/foreign-exchange-reserves]
[2] Central Bank Gold Buying Slowed in August, [https://www.fxstreet.com/analysis/central-bank-gold-buying-slowed-in-august-202509042016]
[3] China's FX Reserves Hit $3.3 Trillion as Gold Holdings Grow, [https://discoveryalert.com.au/news/chinas-foreign-exchange-reserves-2025-growth-drivers]