Overview
- Goldman Sachs analysis and London OTC estimates published Sunday show China bought about 48 tonnes in May and 40 tonnes in June through OTC channels, far above the PBOC’s official May and June figures.
- The PBOC’s own data still show steady official additions, including a 20-tonne increase in July and a record total of about 2,366 tonnes after 21 consecutive months of gains.
- U.S. Treasury data show China’s Treasury holdings fell to $633.4 billion in June, a multi-decade low that signals a broader move to rebalance reserves away from U.S. government debt.
- Domestic demand for gold is also rising, with open interest on the Shanghai Futures Exchange spiking to roughly 400,000 lots, a near five-year high that points to stronger investor participation in China’s markets.
- Analysts say the combined evidence suggests strategic reserve diversification that could lend price support to global gold markets and they will be watching further OTC flows, any updated PBOC disclosures, and Fed or geopolitical shifts for signs of more buying.