China's Central Bank Makes Largest Monthly Gold Purchase Since 2023

The People's Bank of China has made its strongest monthly gold purchase since October 2023, buying approximately 20 tons of gold in July. This marked the fifth consecutive month of purchases, with the bank adding a total of 640,000 ounces to its reserves.

The value of China's gold holdings also rose, reaching $306.35 billion by the end of July, an increase of approximately $2.63 billion from June. The acceleration in China's central bank gold purchases drew attention, with the bank gradually increasing the amount added to its reserves each month since March.

The precious metal also recorded its strongest monthly performance since February, driven by softer-than-expected U.S. inflation and falling oil prices. Spot gold prices traded above $4,310 per ounce in recent transactions.