China Streaks Past 20 Straight Months of Gold Reserves Growth
China's central bank continued its gold-buying streak by adding nearly 20 metric tons of gold to its reserves in July, according to official data. This marks the 21st consecutive month that China has increased its gold holdings. The People's Bank of China reported a monthly increase of 640,000 ounces, bringing its total gold holdings to roughly 76.08 million ounces.
The largest single-month increase since October 2023, this adds to China's growing gold reserves, which now stand at approximately 2,366 metric tons. This trend is part of a broader effort by central banks to diversify their reserve assets and hedge against geopolitical uncertainty.
Gold prices have remained elevated, with spot gold reaching its highest level since mid-June after the release of the Chinese reserve data on Friday. The price rose as much as 1.8% to above $4,316 an ounce, supporting the notion that central banks' increased exposure to gold is driving up demand.
China's efforts to strengthen Hong Kong's role as a global gold trading and storage hub are also contributing to its growing bullion market.