The People’s Bank of China has been constantly purchasing gold marking its seventh consecutive month of buying in August. In dollar terms China’s gold reserves have now reached $253.8 billion making up 7.6% of its total reserves. So far this year the central bank has purchased 21 tonnes of gold following 44 tonnes in 2024 and 225 tonnes in 2023. China’s immediate goal is to raise its official reserves to 5000 tonnes. According to media reports if China wants to become the world’s largest economy it would need to hold over 8000 tonnes of gold. However it is still far from that target. China’s Gold Reserves Currently China officially holds 2300.4 tonnes of gold. Back in 2009 Hou Huimin then Deputy Secretary General of the China Gold Association said the country should hold at least 5000 tonnes. Reaching that figure would make China the world’s second-largest holder of gold reserves after the U.S. which has 8133.5 tonnes.  America’s Gold Reserves Over the past 25 years U.S. gold reserves have remained largely unchanged. Germany ranks second with 3350 tonnes (78% of reserves) followed by Italy with 2452 tonnes (75%) France with 2437 tonnes and Russia with 2330 tonnes. China comes next just ahead of Switzerland which holds 1040 tonnes (11% of reserves). India ranks right after Switzerland with 880 tonnes of gold accounting for 13% of its total reserves. Japan follows with 846 tonnes then Turkey (637 tonnes) the Netherlands (613 tonnes) and Poland (515 tonnes). Since 2023 China and Poland have been the biggest buyers of gold with Poland alone purchasing 287 tonnes between 2023 and 2025.  Can China Overtake US’s As World’s Largest Economy? Analysts stress that for China to overtake the U.S. as the world’s top economy in the coming decades it must accumulate more than 8000 tonnes. China’s overall foreign reserves are at $3.6 trillion out of which gold contributes around 7% which is much lower than the global average of 22%. In comparison gold accounts for 75% of France’s reserves 68% of the Netherlands’ 44% of Turkey’s 37% of Russia’s and 21% of Poland’s. For Japan like China gold makes up only 7%. Reflecting this shift gold prices have surged 40% this year.