PBOC Snaps Up Record Amount of Gold in August, Extends Buying Streak

The People's Bank of China (PBOC) continued its buying spree in August, adding a significant amount to its gold reserves. According to official data released by the central bank, China's gold reserves expanded by 650,000 troy ounces, marking the largest monthly reserve addition since 2023.

The PBOC has been accumulating gold for 22 consecutive months, with this latest increase extending that streak. The surge in bullion prices in August, which rose nearly 10%, contributed to the central bank's decision to boost its gold reserves.

While high Treasury yields present short-term headwinds for non-yielding assets like gold, the PBOC's sustained buying provides long-term structural support for the precious metal.