Sou Hu Cai Jing·2025-11-09 17:51Core Insights - China's foreign exchange reserves reached $33,433.43 billion by the end of October 2025, marking an increase of $4.685 billion from September and the highest level since December 2015 [2] - The People's Bank of China (PBOC) increased its gold reserves to 7.409 million ounces by the end of October, adding 30,000 ounces, continuing a trend of gold accumulation for 12 consecutive months [2][4] Group 1: Central Bank Actions - Since November last year, the PBOC has been in a "gold buying mode," with a notable increase of 330,000 ounces in December 2024, followed by a gradual slowdown in purchases, indicating a long-term strategic vision [4] - In the first quarter of 2025, China, Poland, and Turkey were the top three central bank gold buyers, collectively accounting for over 50% of global purchases, reflecting a broader trend of central banks increasing gold holdings [6] Group 2: Strategic Considerations - Central banks are increasing gold reserves to optimize foreign exchange reserve structures, as gold is a non-sovereign credit reserve asset that is less affected by unilateral sanctions and has different price dynamics compared to other currencies [8] - The accumulation of gold is also seen as a crucial part of the internationalization strategy of the Renminbi, enhancing its role in the global monetary system and boosting international confidence in the currency [8] Group 3: Market Context - As of October 2025, international gold prices reached a historical high of $4,294 per ounce, with a monthly increase of 4.9%, marking the fifth consecutive month of price rises [10] - Historical trends indicate that central bank gold purchases do not guarantee continuous price increases, as seen during the 2008 financial crisis when gold prices fell despite increased purchases [10] Group 4: Broader Implications - The ongoing accumulation of gold by the PBOC symbolizes not only the resilience of the Chinese economy but also reflects significant changes in the international financial landscape, as the era of dollar dominance is gradually shifting [12]