The People’s Bank of China has demonstrated renewed commitment to gold accumulation, expanding its reserves for the second straight month in December despite historically high prices. The central bank’s holdings increased to 73.29 million fine troy ounces from 72.96 million in November, marking a significant return to buying after a six-month pause during 2024’s price surge. This move reflects China’s persistent strategy to diversify its reserves, even as gold trades near record levels. The timing is particularly notable as gold’s rally has cooled following Trump’s election victory and its impact on dollar strength, with Goldman Sachs recently adjusting its $3,000 per ounce target due to expectations of fewer Fed rate cuts in 2025. The PBOC’s continued buying, despite these market conditions, signals China’s long-term confidence in gold as a strategic reserve asset.