China extends gold-buying streak to 19 months

China’s central bank bought gold for the 19th straight month in May, with total foreign exchange reserves hitting $3.44 trillion, the highest since late 2015.globaltimes
The buying streak began in November 2024 as part of Beijing’s strategy to reduce reliance on dollar-denominated assets; gold now represents about 9% of total reserves.gold
Central banks worldwide have accelerated gold purchases amid sanctions risk and inflation concerns, with Goldman Sachs forecasting prices near $4,900 by year-end.scmp

China Extends Gold Buying Streak to 19 Consecutive Months

The People’s Bank of China added gold to its official reserves for the nineteenth straight month in May 2026, maintaining a steady accumulation strategy that has pushed the country’s holdings to their highest level on record amid ongoing geopolitical uncertainty.

Reserves Climb as Dollar Weakens

Data released by the State Administration of Foreign Exchange on Sunday showed China’s gold reserves stood at 74.96 million troy ounces at the end of May, up by 320,000 troy ounces from 74.64 million in April. The buying streak, which began in November 2024, has added roughly 1.7 million ounces to China’s coffers over the period.globaltimes

China’s total foreign exchange reserves also rose, climbing 0.93% to $3.4422 trillion at the end of May — an increase of $31.7 billion from April and the highest level since late 2015. The gains were driven in part by currency movements: the yuan appreciated 0.95% against the U.S. dollar last month, while the dollar itself strengthened 0.85% against a basket of major currencies.tradingeconomics

Strategic Diversification Continues

The sustained purchases reflect Beijing’s broader effort to diversify its international reserves away from dollar-denominated assets and bolster financial security, according to Chinese experts cited by the Global Times. Gold now accounts for approximately 9% of China’s total official reserves.gold

The World Gold Council noted in May that the PBOC’s April addition of 8 tonnes was the largest since December 2024, calling the pace of accumulation “notable”. Monthly additions have typically ranged between 5 and 10 tonnes, with occasional larger purchases aligned with market conditions.canadianminingreport

Broader Central Bank Trend

China is not alone in its appetite for gold. Central banks globally have accelerated purchases in recent years, driven by sanctions risk, inflation hedging, and a desire to reduce exposure to U.S. Treasury holdings. Gold prices have surged past $4,700 per ounce in 2026, with Goldman Sachs raising its year-end forecast to $4,900.scmp

Reuters reported in April that the value of China’s gold reserves had declined even as volumes rose, owing to price fluctuations. The pattern repeated in May, with the Global Times noting that while ounces increased, the overall reserve value dipped slightly from the prior month.reuters