China Accelerates Gold Reserves, Moving Towards Financial Autonomy
The People's Bank of China (PBOC) has increased its gold reserves by 640,000 ounces in July, marking its largest monthly increase since October 2023. This move is part of a broader strategy to strengthen financial autonomy and reduce reliance on Western networks.
With this addition, China's gold reserves now exceed $306 billion at current market prices. The PBOC has been accumulating gold for 21 consecutive months, with the total value of its gold stock growing steadily.
Beyond the sheer volume of gold acquired, analysts note that the pace of Beijing's interventions on the market is accelerating. After a relatively modest addition in March, the Chinese central bank has progressively increased the volume of its orders over the following months, reaching 480,000 ounces in June before setting the July peak.
The PBOC is also transferring part of its historical gold reserves held in London to Hong Kong, where a new gold clearing system is being launched. This move aims to create an Asian pricing hub and gradually free China from Western custody networks.