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Gold falls as China increases holdings
In January, the People’s Bank of China increased its gold reserves by 40,000 troy ounces, extending a buying streak that has now lasted 15 consecutive months.
The purchase was the largest since November 2024, when the central bank resumed active accumulation of the precious metal. The move came against the backdrop of a sharp deterioration in metals markets at the end of the month.
In January, prices of gold and silver reached record highs, supported by a surge in speculative demand. However, on January 30, the market reversed sharply. Thus, gold fell 10% in a single trading session, and silver plunged 16%. Copper lost 5.7% on the same day.
The session was one of the worst for the metals market in recent years. After the sell-off, prices attempted to recover, but volatility remained elevated.
Amid the rout, hedge funds and large traders accelerated sell‑offs. Market data show that bullish positions in gold declined by 23% over the week.
At the same time, central banks continued to add to their reserves. The cumulative volume of official gold purchases has exceeded 860 metric tons since the start of 2025. That figure is lower than the totals recorded in each of the past three years, when purchases topped 1,000 metric tons, but it remains historically high.
Published 10 February 2026
© InstaFintech Group
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© InstaFintech Group
