China’s Ambitious Gold Purchasing Strategy Escalates

China’s effective strategy in bolstering its gold reserves has reached new heights with a notable increase of 19.9 tonnes in July, bringing its total reserve to approximately 2,366 tonnes. This significant escalation underscores the nation’s ongoing commitment to gold acquisition, marking the 21st month of consecutive purchases, as revealed by the State Administration of Foreign Exchange (SAFE).

The central bank embraces accelerated gold accumulation

The People’s Bank of China (PBOC) reported a rise in its gold reserves from 75.44 million fine troy ounces in June to 76.08 million in July. This increase continues a trend that saw China purchase around 15 tonnes in June and another 10 tonnes in May. So far in 2026, China’s gold procurement has reached an impressive 60 tonnes.

According to the World Gold Council, the country’s acquisitions during the first half of 2026 amounted to approximately 40 tonnes. The July surge further reinforces its strategy of proactive gold stockpiling.

China’s central bank continued its gold buying in July with nearly 20 tonnes added, the largest monthly increase since October 2023 and the 21st consecutive month of purchases.

This dedicated accumulation strategy has positioned China as one of the leading official gold holders globally. The central bank’s actions are part of a broader strategy aimed at reducing dependency on traditional reserve assets and reinforcing economic resilience.

What drives the safe storage and pricing expectations?

In tandem with rising gold prices, which recovered with a 0.84% increase during July, reaching over $4,310 per ounce, SAFE also valued China’s gold holdings at $306.35 billion by the month’s end. This valuation rose from $303.72 billion recorded in June.

• Gold procurement for 2026 reached 60 tonnes.
• China’s July reserves total approximately 2,366 tonnes.
• Gold prices rebounded, surpassing $4,310 per ounce in July.

Parallelly, developments in Hong Kong’s bullion market are noteworthy. The government has announced plans to amplify its gold vault capacity significantly by 2030, and introduce new trading mechanisms to facilitate direct physical settlement between China and Hong Kong.

Nevertheless, London maintains its dominance as the hub of gold storage, housing 9,464 tonnes as of June. Although China and Hong Kong are enhancing their positions in the bullion market, London continues to lead in both capacity and daily clearance rates.