China Central Bank Extends Gold-Buying Streak for Seventh Month

The People’s Bank of China added 60,000 troy ounces of the metal to its reserves last month, taking the total to 73.83 million fine troy ounces, according to data released Saturday.

In a move to bolster its financial stability and hedge against economic uncertainties, the People’s Bank of China (PBOC) added 60,000 troy ounces of gold to its reserves last month. This increase, announced on Saturday, brings the total gold reserves to 73.83 million fine troy ounces [1].

The PBOC's gold purchase comes amidst a backdrop of escalating geopolitical tensions and economic volatility. In early June, the central bank injected around $139 billion of medium-term liquidity into markets to address concerns over a potential cash crunch, as trade tensions continue to simmer [2]. This move, which included conducting 1 trillion yuan of outright reverse repurchase agreements, underscores the PBOC's efforts to manage liquidity and support the economy.

The addition of gold to the PBOC's reserves aligns with a broader trend of central banks globally increasing their gold holdings. In 2024, central banks collectively purchased a staggering 1,045 tonnes of gold, marking the third consecutive year above 1,000 tonnes. This institutional buying spree is driven by a convergence of economic and geopolitical factors, including de-dollarization, inflation protection, and geopolitical insurance [3].

The PBOC's gold purchases also reflect a strategic shift in reserve management, as nations seek to diversify their holdings and reduce reliance on the US dollar. Poland, for instance, has been actively accumulating gold to enhance its geopolitical security near the Russia-Ukraine conflict, while India has been diversifying its reserves to support domestic demand [3].

As gold prices continue to reach historic highs, investors and financial professionals are closely monitoring central bank activities. The PBOC's latest gold purchase signals a commitment to financial stability and could influence future monetary policy decisions. With global economic uncertainties persisting, the demand for gold as a safe-haven asset is likely to remain robust.

References:
[1] https://www.marketscreener.com/news/latest/China-Central-Bank-Pumps-Liquidity-Into-Markets-Amid-Cash-Crunch-Concerns-50176153/
[2] https://www.bullionvault.com/gold-news/gold-price-news/gold-dollar-china-060220251
[3] https://www.gainesvillecoins.com/blog/central-bank-gold-purchases-investor-guide-2025