China's Official Sector Buys a Record Amount of Gold in July

China's gold market saw strong official sector buying in July, according to recent data. The People's Bank of China reported an addition of 20t of gold during the month, marking the largest since late 2023 and the 21st consecutive monthly purchase.

The Shanghai Benchmark Gold Price PM rose mildly by 0.7% in July, while the LBMA Gold Price PM was unchanged. Chinese gold ETFs recorded positive flows, lifting total holdings 5t higher to 282t in July.

This trend has continued into August, with inflows recorded almost every trading day so far. If the gold price continues to break higher, investment demand for gold may improve, driven by potential seasonal support from jewellers' inventory replenishment ahead.