China's Central Bank Bolsters Gold Reserves Amid Rising Prices
China's central bank, the People's Bank of China (PBOC), has made its largest gold purchase in nearly two years, adding 20 metric tons to its reserves for a 21st consecutive month.
This move is part of a multi-year trend of increasing gold demand from major banks and governments. The PBOC's July purchase brings its total holdings to 76.08 million ounces.
Gold prices have risen in response, trading above $4,310 an ounce after gaining 0.84% in July. Several analysts predict further price increases, with Deutsche Bank expecting gold to reach $4,700 an ounce by year-end and State Street Investment Management forecasting a price of $5,000 an ounce by late 2026 or early 2027.
The World Gold Council reports that global central bank net purchases rebounded to 289 tonnes in the second quarter, up more than 60% from a year earlier. This trend is driven by official-sector demand for gold, with governments seeking to diversify their reserves and hedge against geopolitical risks.