China Increases Gold Reserves for 23rd Consecutive Month

The People's Bank of China increased its official gold reserves by 740,000 ounces, or approximately 23.02 tonnes, in September. This purchase marks the 23rd consecutive month of acquisitions and represents the largest monthly increase in three years, bringing total holdings to 77.47 million ounces, or roughly 2,410 tonnes.

While gold holdings grew, the State Administration of Foreign Exchange reported that China's broader foreign-exchange reserves fell by $38.1 billion, a 1.11 percent decrease, to $3.4003 trillion. The administration attributed this decline to valuation effects, lower global financial-asset prices, and a stronger US dollar index.

Officials stated that the continued gold purchases are intended to optimize reserve structures and hedge against international financial and geopolitical risks. The strategy is also designed to support the internationalization of the yuan.