The People's Bank of China, the country's central bank, extended its gold-buying streak to 20 months in June, recording its largest monthly increase in the current accumulation cycle as bullion prices retreated from earlier highs.
According to central bank data released on Tuesday, the PBOC added 480,000 ounces to China's official gold reserves last month to hit 75.44 million ounces. The increase came as gold prices fell further in June after hitting a record high early this year.
The latest addition marked the biggest monthly increase since the central bank resumed gold purchases in November 2024, according to market tracker Wind Info.
Shao Yu, chief economist at the innovation center of Fudan University's School of Management, said that the PBOC acts more like a long-term allocator than a short-term trader — slowing purchases when prices rise significantly, while stepping up buying during precipitous declines.
Shao said that the PBOC is likely to continue its "small but steady" approach to increasing gold holdings, reflecting both strategic positioning and efforts to optimize costs over time.
