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China Adds Record Amount of Gold to Reserves in August

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China's central bank has made its largest monthly gold purchase since 2023, adding 650,000 troy ounces to its reserves. This move marks the 22nd consecutive month of buying by the People's Bank of China (PBOC), the longest streak since they began disclosing monthly figures.

Total holdings now stand at 76.73 million troy ounces, up from 76.08 million in July. The reported value of China's gold jumped to $350.08 billion from $306.35 billion a month earlier, though most of this increase reflects gold's own price gain rather than new tonnage.

Gold now accounts for close to 10% of China's roughly $3.4 trillion in foreign exchange reserves, still far short of the 60% to 70% share held by major Western central banks such as the Federal Reserve.

Gu Fengda, chief analyst at Guoxin Futures, described China's accumulation as 'a highly strategic and forward-looking deployment' of its reserves, not a bet on where gold trades next week.

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