China’s recent surge in gold purchases, particularly through the London OTC market, has caught the attention of global markets. In May 2026, the People’s Bank of China (PBoC) acquired approximately 48 tonnes of gold, marking the highest monthly volume in more than a year. This move extends China’s streak of increasing its gold reserves to 20 consecutive months, with significant official purchases reported in both May and June. The PBoC’s strategy appears to reflect a broader effort to bolster its reserves, which reached approximately 2,347 tonnes by the end of June, accounting for 8.9% of its foreign exchange reserves.
The market impact of China’s gold acquisitions is being closely monitored, particularly in relation to future price movements. Current market pricing, as evidenced by prediction markets, suggests an uptick in expectations for gold prices, yet remains cautious. The probability of gold reaching $15,000 by the end of December 2026 remains low, with markets assigning a mere 2% chance, reflecting skepticism despite China’s aggressive purchasing behavior.
Key Takeaways
China’s significant gold purchases in May 2026, totaling 48 tonnes, suggest a continued strategic accumulation by the PBoC.
