In this episode of Unearthed, hosts Joe Cavatoni and John Reade examine the shifting dynamics of China - the world’s most important gold market for more than a decade.
The local gold price kicked 2026 off with its strongest January on record. And while it pulled back sharply in late January and early February, gold bounced back since. In January, investment demand benefited from the powerful gold price rally – bullion sales at gold stores surged and Chinese gold ETFs’ holdings expanded sizably. Meanwhile, the PBoC keeps reporting gold purchases, further boosting retail investors’ interest. Gold jewellery demand also improved amid retailers’ pre-Chinese New Year holiday restocking.
Central banks bought 19t of gold in December 2025 via the IMF and other public data sources, bringing full year 2025 reported net purchases to 328t. This is lower than the 345t of net purchases recorded in 2024.
Last week, central banks across developed economies held policy rates and the new Fed Chair was nominated, while economic updates were mixed. US consumer confidence weakened even as earnings beat expectations; Eurozone GDP exceeded expectations; China’s manufacturing and service declined; and India and Europe finalized a trade deal.
