The People's Bank of China extended its gold-buying streak to 19 straight months with a significant purchase in May 2024. The central bank added to its reserves, continuing a steady accumulation that began in late 2022.
19 months and counting
China's gold holdings have increased each month since November 2022. The May purchase marks the latest in a series that has made the PBOC one of the most consistent buyers among central banks. The bank did not disclose the exact amount of gold bought, but it described the purchase as significant.
Why the streak matters
Gold accounts for a small share of China's overall foreign exchange reserves, which are among the largest in the world. Still, the monthly additions signal a deliberate effort to diversify the country's reserve assets away from dollar-denominated holdings. The PBOC's buying has been a steady source of demand in the global gold market.
The central bank reports its gold holdings each month as part of its official reserve assets data. The June figures are due in the coming weeks. If the streak continues, it will mark the 20th consecutive month of purchases — a milestone that would further underline China's commitment to gold as a reserve asset.
