The People’s Bank of China expanded its gold holdings for an 18th consecutive month in April, adding 260,000 ounces to bring total reserves to 74.64 million fine troy ounces, or approximately 2,322 tonnes, according to data released Wednesday by China’s State Administration of Foreign Exchange. The reserves’ value rose to $344.17 billion from $342.76 billion at the end of March.
The sustained accumulation underscores a broader shift among central banks worldwide seeking alternatives to dollar-denominated assets, a trend that accelerated after Western nations froze roughly $300 billion in Russian reserves in 2022.
A Structural Shift in Global Reserves
The dollar’s diminishing role as the world’s primary reserve asset is now well documented. IMF data released in March showed the U.S. dollar’s share of global foreign exchange reserves fell to 56.77 percent in the fourth quarter of 2025, down from 56.93 percent the prior quarter. Gold’s share of combined global reserves, meanwhile, rose to 30 percent by late 2025, according to Deutsche Bank Research — its highest level in decades.
Morgan Stanley, which ranks gold as its top commodity pick with a price target of $4,800 per ounce by late 2026, has noted that gold recently overtook U.S. Treasuries as a share of global central bank reserves for the first time since 1996.
Not Just China
China is far from alone. The World Gold Council reported that central banks bought a net 27 tonnes of gold in February 2026, in line with the monthly average of 26 tonnes seen throughout 2025. Poland, India, Turkey, and several African nations including Uganda and Kenya have all signaled intentions to boost their gold holdings.
A Deutsche Bank scenario published in April outlined how accelerating de-dollarization by emerging market central banks could push gold prices substantially higher over the next five years, as countries with roughly $7.5 to $8 trillion in reserves shift allocations toward the metal.
Gradual, Not Revolutionary
Analysts caution that the shift remains gradual rather than disruptive. J.P. Morgan noted in August 2025 that despite its declining share, the dollar’s reserve currency status remains intact due to the lack of a viable alternative and its continued dominance in global transactions. The dollar still accounts for the vast majority of trade invoicing and cross-border payments, and no single currency or asset appears positioned to replace it outright.
The PBOC’s buying streak, which began in November 2024, has added steadily to China’s physical gold stock even as the metal’s price has risen sharply — gold gained more than 50 percent in 2025 alone. The pace of China’s monthly purchases has remained modest at roughly 5 to 8 tonnes, suggesting a deliberate, long-term strategy rather than an urgent flight from dollar assets.
