China Sets New Gold-Buying Record for Second Month

China's central bank has set a new gold-buying record for itself. For two months in a row, it purchased its largest amount of gold since October 2023.

The People's Bank of China added 650,000 troy ounces of gold in August, extending its buying streak to 22 consecutive months. The total holdings now stand at 76.73 million troy ounces, equivalent to approximately 2,386.57 tonnes.

The reported value of China's gold reserves rose to $350.08 billion, but this is largely due to the price increase during August rather than new purchases. Reserve managers prioritize diversification and consider a long-term allocation plan, unaffected by short-term price fluctuations.

Central banks' expectations suggest continued buying. The World Gold Council's 2026 Central Bank Gold Reserves Survey found that 89% of respondents expect global official-sector gold reserves to rise over the next year, with 45% anticipating an increase in their own holdings. This aligns with Gu Fengda's view on China's accumulation as a 'highly strategic and forward-looking deployment'.