Beijing's Gold Buying Streak Hits 21 Months: Central Banks Fuel Market Rally

The gold market is experiencing a prolonged buying streak, driven by Beijing's persistent purchases. The People's Bank of China has added approximately 20 tonnes of gold to its reserves in July, marking the 21st consecutive month of accumulation.

This consistency is a key message: Beijing is systematically diversifying its foreign exchange holdings, and short-term price swings are not part of the calculus. Central banks globally have increased their gold purchases, with around 289 tonnes bought in the second quarter, a 62.4% jump from the previous year.

The central bank bid is no longer driving the market alone. Institutional investors have begun rebuilding positions in gold-backed exchange-traded funds, particularly in China, and international inflows are picking up as well. Global bullion holdings in ETFs have risen by 24 tonnes since July 20.