China’s PBOC makes largest gold purchase since 2023

The People's Bank of China added 480,000 troy ounces of gold to its reserves in June, its largest monthly purchase since late 2023, as the central bank took advantage of a sharp drop in bullion prices to accelerate its diversification away from dollar-denominated assets.

The addition brought China's total gold holdings to 75.44 million fine troy ounces, valued at $303.72 billion at the end of June, according to official data released on Monday. The purchase extends the PBOC's buying streak to 20 consecutive months — the longest since at least 2015, when the bank began publishing more regular updates on its reserves.bloomberg+3

Accelerating Purchases Amid Falling Prices

June's acquisition marked a sharp increase from the 320,000 ounces added in May and far exceeded the smaller monthly purchases earlier this year. In the first quarter, monthly additions ranged from 30,000 to 160,000 ounces. The PBOC resumed buying gold in November 2024 after a six-month pause.kitco+5

The purchases came as gold prices suffered their worst monthly performance in years. Bullion fell more than 10% in June, briefly dipping below $4,000 an ounce. CNBC reported spot gold was trading around $3,990 on June 25 after breaching the $4,000 level the previous session. The decline followed a turbulent first half of 2026 in which gold swung from record highs above $5,400 in January to sharp selloffs driven by shifting rate expectations and geopolitical developments.cnbc+3

Strategic Diversification

China's gold accumulation reflects a long-term strategy to reduce reliance on U.S. Treasury holdings and the dollar in its foreign reserves. According to the World Gold Council, the PBOC's gold now accounts for roughly 9% of China's total reserves. Reuters Thomson Reuters Corporation ↘ 2.06% has previously reported that China's gold holdings remain relatively modest compared with Western central banks, suggesting further room for growth.gold+1

The latest data from the World Gold Council's annual survey showed that 89% of central bankers globally expect gold reserves to increase over the next 12 months, reinforcing the broader trend of official sector demand that has underpinned bullion markets since 2022.gold

Macquarie forecasts an average gold price of $4,641 per ounce for 2026, representing a 35% year-on-year gain, though the firm expects prices to ease to $4,200 in 2027.cnbc