China's Central Bank Boosts Gold Reserves with Largest Monthly Purchase Since October 2023
China's central bank, the People's Bank of China (PBOC), has continued its streak of buying gold for reserves. In July, it added 640,000 ounces to its holdings, marking the largest monthly purchase since October 2023.
This latest acquisition brings the PBOC's total gold holdings to 76.08 million fine troy ounces, a significant increase from 75.44 million ounces in June.
The purchase is notable not only for its size but also because it follows smaller additions earlier this year. This trend suggests that the PBOC is gradually shifting its reserves toward assets that are less tied to any one country's currency.
Gold prices rose 0.84% in July, influenced by softer US inflation data and easing oil prices. However, central banks tend to buy gold for long-term reserve management rather than short-term trading, so their demand can be a steady source of support even when market expectations change.