Data from the central bank shows that China's gold reserves stood at 74.22 million ounces at the end of February, up from 74.19 million ounces at the end of January, marking the 16th consecutive month of gold purchases. According to statistics from the State Administration of Foreign Exchange, as of the end of February 2026, China’s foreign exchange reserves amounted to $3,427.8 billion, an increase of $28.7 billion compared to the end of January, representing a rise of 0.85%.
On March 7, data from the People's Bank of China showed that China's gold reserves at the end of February stood at 74.22 million ounces, compared to 74.19 million ounces at the end of January, marking the 16th consecutive month of gold reserve increases.
In terms of the magnitude of the increase, the central bank has maintained a moderate pace of gold purchases for several months. At the end of November and December last year, gold reserves increased by 30,000 ounces each month on a month-over-month basis, while in January this year, there was an increase of 40,000 ounces, and in February, an increase of 30,000 ounces.
According to statistics from the State Administration of Foreign Exchange, as of the end of February 2026, China's foreign exchange reserves amounted to 3.4278 trillion US dollars, up by 28.7 billion US dollars from the end of January, representing a growth rate of 0.85%.
In February 2026, influenced by factors such as macroeconomic data, monetary policies, and expectations of major economies, the US dollar index rose, and prices of major global financial assets fluctuated. The combined effects of currency translation and asset price changes contributed to the increase in foreign exchange reserves that month. China’s economy continues to grow steadily with progress towards innovation and optimization, maintaining long-term positive supporting conditions and fundamental trends, which is conducive to keeping the scale of foreign exchange reserves basically stable.
This week, gold prices fell by 2% due to a significant strengthening of the US dollar, ending a four-week upward trend. Gold faced a 'double blow': firstly, as gold is priced in US dollars, the rise in the dollar directly weighed on gold prices; secondly, prior to the outbreak of conflict in the Middle East, gold had already surged 21%, reaching a high level, making it the most convenient asset for traders to reduce exposure when deleveraging is required.
(Spot Gold 4-Hour Chart)
Recently, Jeffrey Gundlach, CEO of DoubleLine Capital and known in the market as the 'New Bond King,' stated in an in-depth video interview that central banks have reduced their gold reserves to approximately 15% of total holdings, but he believes they are likely to double this amount. Gold reserves once accounted for as much as 70%. If they merely increase to 30%, it would represent a massive demand for gold.
The World Gold Council reported this week that in February, global gold-backed ETFs saw net inflows of 5.3 billion US dollars, marking the ninth consecutive month of inflows and achieving the strongest start to a year on record. Driven by sustained increases in gold prices, the total value of global gold assets under management (AUM) climbed to a record high of 701 billion US dollars, with global holdings reaching 4,171 tons.
Editor/Doris
