🟡 China Doubles Down on Gold Despite Market Correction $XAU
China’s central bank (PBOC) increased its gold reserves by another 40,000 troy ounces in January, extending its buying streak to 15 straight months. The move reinforces long-term confidence from one of the world’s largest reserve holders.
Earlier in January, gold ($PAXG ) and silver ($XAG ) surged to record levels before facing a sharp pullback on January 30. Gold slid nearly 10%, silver dropped 16%, and copper fell 5.7% — marking one of the harshest precious metals sell-offs in recent years.
As prices declined, hedge funds cut bullish gold positions by around 23%, intensifying downward pressure. In contrast, central banks stepped in aggressively, using the dip to accumulate. Since early 2025, official gold purchases have reportedly exceeded 860 metric tons.
The takeaway? While short-term traders reduced exposure, sovereign institutions continued stacking. Persistent central bank demand during volatility signals strong structural support — and suggests price corrections may offer strategic entry opportunities for long-term investors.
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