China's Central Bank Adds Record Gold to Reserves Amid Market Uncertainty
The Chinese gold market experienced a mixed picture in July, with aggressive buying by the central bank and increased investor appetite offsetting sluggish demand for jewelry. According to the World Gold Council (WGC), the People's Bank of China (PBoC) added 20 tonnes of gold to its reserves in July, marking its largest monthly increase since October 2023.
Total official holdings now stand at 2,366 tonnes, with this buying spree extending across 21 consecutive months. Gold-backed exchange-traded funds in China also recorded fresh capital inflows, with holdings expanding by roughly 5 tonnes during July to 282 tonnes.
The WGC linked these inflows to firmer bullion prices and persistent market uncertainty. In contrast, activity in Shanghai gold futures softened, with average daily trading volumes on the Futures Exchange slipping 4% from the prior month to about 292 tonnes.