The People’s Bank of China has now purchased gold for 19 consecutive months, the longest unbroken buying spree in modern Chinese monetary history. Official data revealed that the central bank added over 10 tonnes of gold in May—the largest monthly increase since January 2025—following an 8-tonne addition in April. Total gold reserves have climbed to a record 2,331 tonnes, with bullion now accounting for more than 9% of China’s foreign exchange reserves.
This sustained accumulation reflects Beijing’s strategic push to diversify away from the U.S. dollar and enhance the international credibility of the yuan. The PBOC’s buying streak began in November 2022 and has continued even as gold prices have fallen roughly 12% from recent highs near $4,767 to around $4,190 per ounce. Central bank purchases, which accounted for about 25% of global gold demand in 2023, are helping to establish a price floor during corrections, according to analysts.
Beyond China, other central banks such as Poland and Uzbekistan have also been active buyers, tightening the physical gold market. While Western futures markets continue to exert short-term pressure on prices, the persistent official demand underpins long-term value. The PBOC’s strategy is seen as a deliberate policy shift to hedge against geopolitical risk and currency depreciation, with no sign of ending soon.
