China's central bank continues gold accumulation as strategic reserve policy

BEIJING, Jan 17 — China's central bank is maintaining its strategy of increasing gold holdings to optimize its international reserves, with experts citing intact fundamental drivers for long-term gold price rises.

Increasing gold holdings remains a long-term strategic direction for the People's Bank of China, according to financial analysts.

The move aims to diversify and strengthen the composition of the country's foreign exchange reserves.

Experts attribute the policy to ongoing global economic uncertainties and gold's role as a safe-haven asset.

"The fundamental drivers supporting a long-term rise in gold prices remain intact," one analyst said.

China has been steadily accumulating gold for several years as part of its reserve management strategy.

This trend aligns with actions by other central banks worldwide boosting gold reserves in recent periods.

Gold prices have shown resilience amid inflation concerns and geopolitical tensions.

The central bank's approach reflects broader efforts to reduce reliance on traditional reserve currencies.

Market observers expect continued gold accumulation as China pursues financial stability goals.