Why is China buying up gold?

China is increasing its gold reserves to reduce dependence on dollar-denominated assets and guard against financial and geopolitical risks, analysts say. In September, the People’s Bank of China bought about 23 tonnes, bringing reported holdings to roughly 2,410 tonnes and extending its buying streak to 23 consecutive months. Gold made up 8.5 percent of China’s official reserves, up from 5.5 percent at the end of 2024. Chinese households are also buying more gold to preserve savings amid uncertainty about the domestic economy.