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Gold prices closed the week at an all-time high of $3,586 per ounce, marking a 4.04% weekly gain.
The rally, which tested an intraday peak of $3,600, was supported by expectations of further interest rate cuts by the U.S. Federal Reserve (Fed), continued geopolitical risks, and a weaker U.S. dollar. Since the start of the year, the precious metal has risen nearly 37%.
Among central banks, China has drawn attention with its steady accumulation of gold. The People’s Bank of China (PBOC) purchased 21 tons so far this year, raising the country’s official holdings to 2,300 tons and marking nine consecutive months of acquisitions.
Despite the increase, gold still accounts for only about 7% of China’s $3.6 trillion in total reserves, compared to the global average of 22%. Analysts suggest this relatively low share may encourage Beijing to continue expanding its gold stockpile.
China currently ranks as the sixth-largest official holder of gold worldwide. The United States remains at the top with 8,133 tons.
While reserves are growing, China’s gold imports have fallen sharply. According to the World Gold Council’s China Research Head Ray Cia, the country imported 323 tons in the first half of 2025, down 62% from the previous year. Weaker jewelry demand and stronger domestic mining activity were cited as key reasons for the decline.
China’s accumulation strategy is viewed as part of efforts to reduce reliance on the U.S. dollar and diversify reserve assets. The move also reflects lessons drawn from Western sanctions on Russia in 2022, when billions of dollars of Moscow’s reserves were frozen. Unlike foreign currency reserves, gold cannot be sanctioned or blocked, making it a preferred hedge for emerging economies.
The trend is not limited to China. Central banks collectively purchased more than 1,000 tons of gold in both 2023 and 2024, with total demand this year expected to reach around 900 tons.
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