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China's Gold Reserves Top $350 Billion as PBOC Extends Buying Streak

Rising bullion prices magnified August's valuation and underline Beijing's push to diversify reserves away from dollar assets.

Overview

  • The People's Bank of China reported on Monday that its gold holdings reached 76.73 million troy ounces at the end of August, extending an unbroken buying run to 22 months.
  • The reported dollar value of reserves jumped to $350.08 billion in August, a rise driven mainly by higher market gold prices rather than a matching volume of new purchases.
  • Crypto Briefing and InvestingLive put August additions at about 650,000 ounces, building on roughly 60 tonnes added year-to-date through July and a sharp monthly pace since March.
  • Analysts warn PBOC reporting has been episodic in the past and say extra purchases may flow through over-the-counter channels, which keeps markets skeptical about the full scale of China's accumulation.
  • Investors see ongoing central-bank buying as a structural support for gold and a sign that Beijing is shifting part of its reserve mix toward assets that cannot be frozen, a move that could change global demand patterns for bullion.