Asia Quietly Shifts to Gold Amid Reserve Diversification
The People's Bank of China (PBoC) has been on a gold-buying spree for 21 consecutive months, adding 20 tonnes in July 2026. This makes it the bank's largest single monthly purchase since October 2023 and brings its total holdings to 2,366 tonnes.
The PBoC's gold reserves now account for 8% of China's foreign exchange reserves, valued at around $300 billion at current prices. This is part of a larger trend in Asia towards reserve diversification, with Hong Kong launching a central gold clearing system and South Korea resuming gold purchases after a 13-year hiatus.
The Hong Kong-Shanghai link allows for two-way physical gold transfers between the two markets, while South Korea's return to gold buying aims to increase its gold allocation from the current 1.1% of total reserves.