China Continues Gold Buying Streak, Purchases 20 Tonnes in August

China's central bank continued its gold-buying spree in August, purchasing an additional 20 tonnes of the precious metal. This marks the country's largest monthly gold purchase since October 2023 and extends its buying streak to 22 consecutive months.

The recent data from The Kobeissi Letter shows that China's total gold holdings have now reached a record 2,387 tonnes, or approximately 76.73 million troy ounces. This surge in demand is helping support the gold market at a time when higher inflation and rising bond yields are putting pressure on it.

The steady demand from a major central bank like China's continues to provide a crucial source of support for the gold market. The country bought 20 tonnes in July, another 15 tonnes in June, and has purchased 80 tonnes so far this year compared to just 29 tonnes in all of 2025.

Gold prices came under pressure after U.S. inflation data exceeded expectations, but buyers stepped in near the $4,320 level, helping the gold price recover towards $4,345. The market remains cautious due to rising interest rates and bond yields, which can make investors think that higher interest rates will persist.