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China's gold reserves rose to 74.22 million troy ounces in February 2026, marking the 16th consecutive monthly increase. The value of these reserves climbed to $387.59 billion from $369.58 billion in January, reflecting both higher gold prices and continued accumulation. Analysts note that China remains a dominant buyer of gold, with speculation that its actual holdings may be double official figures due to unreported central bank purchases. Despite a 2% weekly decline in gold prices amid U.S.-Iran tensions and volatile trading, the metal remains supported by geopolitical risks and global de-dollarization trends. For markets, China's sustained gold buying signals a strategic shift toward diversifying reserves away from the U.S. dollar. This trend could pressure the dollar's dominance and boost demand for safe-haven assets. Traders should monitor how central banks in the Gulf and other emerging markets respond to China's example, as well as potential policy shifts in major economies. The recent price volatility highlights the metal's sensitivity to geopolitical developments, particularly in the Middle East. Looking ahead, investors should watch for further central bank gold purchases, especially from China and other emerging markets. The discrepancy between official and estimated reserves also raises questions about transparency in global gold markets. For traders, key levels to monitor include $5,000 and $5,400 for gold, with potential for renewed buying if tensions escalate or central bank demand accelerates.
