China Accelerates Gold Buying with Record Reserves

China's central bank has continued to strengthen its gold reserves in July, adding around 20 tons of gold, its largest monthly increase since October 2023. This move extends the People's Bank of China's (PBOC) gold-buying streak to 21 consecutive months.

The PBOC's gold holdings rose to approximately 76.08 million ounces at the end of July, up from 75.44 million ounces in June, equivalent to an increase of roughly 19.9 tons. Since the beginning of the year, China has increased its official gold reserves by around 60 tons, taking total holdings to a record level of approximately 2,366 tons.

China's gold purchases come as the metal increasingly shifts within global central-bank portfolios from a traditional reserve asset to a strategic instrument for diversifying holdings and managing economic and geopolitical risks. The World Gold Council survey highlights this trend, with 89% of reserve managers expecting global central-bank gold holdings to increase over the next 12 months.