PBOC extends gold-buying streak to 22 months with record monthly increase

(ECNS) -- China's central bank extended its gold-buying streak to 22 consecutive months in August, with holdings rising to 76.73 million ounces by the end of the month, according to data released Monday by the People's Bank of China (PBOC).

Gold reserves increased by 650,000 ounces (about 20.22 metric tons) from July, marking the largest monthly increase since the central bank resumed purchases in November 2024.

The August increase outpaced July's 640,000-ounce addition, continuing the accelerated pace of accumulation that began in March. China's official gold reserves now stand at 76.73 million ounces (approximately 2,386.57 metric tons), valued at $350.08 billion.

The buying spree came as expectations of a U.S. Federal Reserve rate cut in August faded, pushing international gold prices higher. Wang Qing, chief macro analyst at Golden Credit Rating International Co., Ltd., a major Chinese credit rating agency, said the U.S. Treasury's August announcement that it would expand long-term Treasury buybacks fueled market concerns over U.S. fiscal risks and the dollar's credibility. These concerns not only pushed up global gold prices but may also have directly accelerated the central bank's gold purchases that month, Wang said.

Data show that gold accounts for less than 10% of China's official reserves, which consist primarily of foreign exchange and gold holdings. By contrast, the European Central Bank (ECB) reported on June 2 that gold's share of global official reserve assets had risen to 27% by the end of 2025, surpassing U.S. Treasuries to become the world's largest official reserve asset.

"Although gold prices are currently near historic highs, the need to increase gold reserves has grown from the perspective of optimizing the reserve structure," Wang said. He added that gold is widely accepted as a final means of payment, and central bank gold purchases can enhance the credibility of sovereign currencies and create favorable conditions for the steady and prudent internationalization of the renminbi. Taking all factors into account, Wang said continued gold purchases by the central bank remain the broader trend.