China Increases Gold Reserves for 20th Consecutive Month

The People's Bank of China increased its official gold reserves by 480,000 ounces, or approximately 15 metric tons, in June 2026. This addition marks the largest monthly purchase since October 2023 and the 20th consecutive month of accumulation, bringing total reserves to 75.44 million fine troy ounces.

This buying streak occurred despite a severe technical market breakdown in June. Spot gold prices tumbled approximately 12%, falling from roughly $4,540 to below $4,000 per ounce—the worst monthly performance since October 2008. Due to this price drop, the total value of China's reserves fell to $303.72 billion from $340.75 billion in May. Market analysts attribute the price decline to a strengthening U.S. dollar, inflation concerns related to the war in Iran, and expectations that the Federal Reserve System will maintain elevated interest rates.

China's accumulation is part of a long-term strategy to reduce dependence on the U.S. dollar and diversify foreign-exchange portfolios amid geopolitical tensions. This trend extends to other emerging markets; for example, the Central Bank of Uzbekistan added 9 tonnes in June, and the Narodowy Bank Polski increased holdings by 64 tonnes as of May. While financial institutions like Goldman Sachs and Deutsche Bank lowered their price estimates, the World Gold Council reports that central banks remain committed to gold as a hedge against currency risks.