China’s PBOC keeps buying gold as reserves grow for eighth month

China added to its official gold reserves for an eighth straight month in June, as prices of the precious metal traded near a record high.

Bullion held by the People’s Bank of China rose by 70,000 troy ounces last month, according to data on Monday. Its gold reserves have climbed by 1.1 million troy ounces — or about 34.2 tons — since the current run of purchases began in November last year.

Gold has climbed more than a quarter year to date, underpinned by robust demand from global central banks, as well as safe-haven flows amid an escalating conflict in the Middle East and US President Donald Trump’s aggressive economic and trade agendas.

While the rally showed signs of cooling in June, with prices ending the month little changed, ongoing official-sector buying is likely to remain a strong support. Persistent concerns about the ballooning US fiscal deficit and a perceived weakening of the dollar are prompting some countries to rethink their reliance on US assets.

The PBOC has been among the most enthusiastic official buyers of gold in recent years as authorities have long sought to diversify their holdings from the dollar. The current run of purchases follows a six-month hiatus that ended an 18-month buying spree in 2024.

(By Sybilla Gross)