China's central bank has continued its policy of adding to the nation's gold reserves, marking the twentieth consecutive month of accumulation.
According to data released by the People's Bank of China, the country's gold holdings stood at 75.44 million ounces as of the end of June, representing an increase of 480,000 ounces from the previous month.
This consistent buying spree began back in November 2024 when the central bank resumed adding to its gold reserves.
Gold prices have experienced significant volatility throughout the year, posting gains only in January and February, followed by declines in March, April, May, and June.
The month of June saw particularly sharp drops, with spot and futures prices falling by 11.69% and 12.44% respectively, marking the largest monthly declines of the year so far.
As prices have trended lower, the central bank's purchasing pace has accelerated.
Over the first six months of the year, monthly additions were 40,000 ounces, 30,000 ounces, 160,000 ounces, 260,000 ounces, 320,000 ounces, and 480,000 ounces respectively.
The June purchase volume represents the highest monthly increase in nearly 16 months.
Global Central Bank Trend
This activity aligns with a broader international trend where central banks worldwide have been actively increasing their gold reserves.
A recent report from the European Central Bank indicates that by the end of 2025, gold's share of global official reserves, which include foreign exchange and gold, had risen to 27%.
This elevated gold to the position of the largest reserve asset globally, surpassing holdings of U.S. Treasury securities.
Further supporting this trend, the World Gold Council's latest annual survey of central bank gold reserves, conducted in 2026, reveals that demand from this sector remains on an upward trajectory.
The survey found that 45% of reserve managers polled expect their institutions to increase gold holdings over the next 12 months, a record-high proportion.
Additionally, 84% of the central banks surveyed believe gold's share of global reserves will rise over the next five years, up from 76% in the previous year's survey.
Foreign Exchange Reserves
In a separate development, China's foreign exchange reserves saw a slight decrease in June.
Data from the State Administration of Foreign Exchange shows that the country's forex reserves stood at $3.4163 trillion at the end of June, down by $26 billion, or 0.75%, from the end of May.
The administration attributed the monthly decline to the combined effects of currency translation and changes in asset prices.
These factors were influenced by the performance of the U.S. dollar index and mixed price movements across major global financial assets, driven by macroeconomic data from major economies and monetary policy actions and expectations from key central banks.
The administration noted that China's economy, which is developing steadily with a focus on fostering new growth drivers, provides a solid foundation for keeping the country's foreign exchange reserves generally stable.
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