The People’s Bank of China (PBoC) continues to be a major force in the global gold market, with sustained purchasing activity providing a solid foundation for prices, according to reports from ING and Commerzbank. ING analysts note that China’s persistent gold buying creates a reliable floor under prices, offsetting headwinds from a strong US dollar or rising interest rates. The PBoC has been steadily increasing its reserves for months, a move seen as a strategic effort to reduce reliance on the US dollar and enhance financial security.
Commerzbank echoes this view, emphasizing that China’s gold accumulation is a long-term structural shift rather than a short-term hedge. The bank adds that other central banks, including those in Turkey, India, and Poland, are also net buyers, amplifying the de-dollarization trend. This collective demand, which is less price-sensitive than private investment, provides a stabilizing force for gold prices, limiting downside risk even when other demand sources weaken.
Both reports highlight that this institutional buying is a key differentiator from previous cycles, suggesting that gold may retain its value better under current geopolitical tensions. The trend is expected to persist as long as global uncertainty and de-dollarization efforts remain priorities for emerging markets.
