The People’s Bank of China said its gold holdings climbed to 75.44 million troy ounces (2,346 tonnes) by the end of June, marking the longest run of monthly purchases since 2015, according to Reuters.
The continued accumulation highlights Beijing’s efforts to diversify its foreign exchange reserves and reduce exposure to U.S.-denominated assets. However, gold still represents less than 10% of China’s reserve portfolio, according to the World Gold Council.
A woman shows a gold bar before selling in a Smart Gold Store Machine placed in a shopping mall in Shanghai on January 29, 2026. Photo by AFP |
Separately, China’s foreign exchange reserves totaled $3.4163 trillion at the end of June, down $26 billion, or 0.75%, from the previous month, according to the State Administration of Foreign Exchange.
Analysts said gold has become increasingly important for policymakers seeking assets that are less vulnerable to sanctions risks, geopolitical tensions and volatility in the U.S. financial system, according to the South China Morning Post.
The World Gold Council reaffirmed gold’s strategic importance as a reserve asset in its mid-year outlook last week, citing central-bank purchases, geopolitical uncertainty and potential monetary easing as factors supporting the market.
Analysts at Goldman Sachs also maintained their $4,900-an-ounce end-2026 price target, arguing that sustained central-bank demand would continue to support bullion prices despite this year’s correction.
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