China's central bank is expected to deploy its most aggressive monetary tactics in a decade this year as it tries to stimulate the economy and soften the blow of impending U.S. tariff hikes, but in doing so it risks quickly exhausting its firepower.

China’s central bank expanded its gold reserves for a second month in December, signaling renewed appetite after temporarily pausing purchases last year as prices soared.

China's central bank said on Friday it has suspended treasury bond purchases, triggering a jump in yields and spurring speculation that the move was aimed at defending a falling currency.

Gold futures rose Tuesday to snap a two-session losing streak, gaining from a softer dollar after President-elect Trump rejected reports of a more moderate trade policy approach. Gold prices broadly shrugged off stronger than expected U.