China's Gold Buying Streak Continues as Fed Tightening Odds Decline

Last week's rally in precious metals may be more than just a technical bounce off of support. The weak jobs report has lowered the odds of a Fed tightening for the balance of 2026, reducing angst plaguing gold and other commodities.

China's central bank, the People's Bank of China (PBoC), has been aggressively accumulating gold reserves, purchasing 20 tonnes in July 2026, its largest single-month increase since October 2023. This brings their total official reserves to approximately 2,352 tonnes.

Marc Middelkoop stated, 'China is a very active buyer of dips,' adding that the same pattern holds for copper and oil. Chinese demand for gold and silver is running 150% to 200% above last year's levels.

Inflation has decoupled from the Fed's 2% target, and companies like Barrick Corporation are reporting strong results. Their attributable free cash flow jumped 195% year-over-year to $1.21 billion, with gold production exceeding guidance.