Central Banks Rush to Buy Gold Amid Geopolitical Uncertainty

Central banks around the world are increasingly turning to gold as a safe-haven asset amid growing geopolitical uncertainty. China, one of the largest buyers in the gold market, has added to its reserves for 21 consecutive months, surpassing its previous record streak.

The People's Bank of China held 76.08 million troy ounces of gold as of July, a monthly increase of 640,000 ounces (about 19.9 tonnes), according to recent reports by Caixin and Bloomberg. This is the largest monthly increase since October 2023.

China's buying spree is widely seen as part of Beijing's effort to reduce its dependence on dollar-denominated assets and diversify its holdings amid intensifying US-China rivalry.