China Extends Gold Buying Streak to 20 Consecutive Months

China has continued to increase its official gold reserves, extending its gold-buying programme to 20 consecutive months after adding approximately 14.9 tonnes during June.

According to the People’s Bank of China, the country’s official gold holdings now stand at 75.44 million troy ounces, equivalent to approximately 2,346 tonnes. This marks China’s longest uninterrupted period of gold accumulation since 2015 and reflects a continued focus on strengthening its reserve assets.

Why Does This Matter?

Central banks are among the largest participants in the global gold market, and their purchasing decisions are closely watched by investors around the world.

Unlike individual investors, central banks typically make decisions based on long-term economic and strategic objectives rather than short-term price movements. Their aim is to preserve national wealth, diversify foreign exchange reserves and reduce reliance on individual reserve currencies.

China’s continued accumulation of physical gold is widely seen as part of a broader strategy to diversify its reserves while strengthening financial resilience during an increasingly uncertain global economic environment.

A Broader Global Trend

China is not alone.

In recent years, central banks have collectively been purchasing gold at some of the highest levels seen in decades. Countries across Asia, the Middle East and Eastern Europe have all continued to add to their official reserves as gold remains an important component of long-term reserve management.

Unlike paper assets, physical gold carries no counterparty risk and has historically been viewed as a reliable store of value during periods of economic uncertainty, geopolitical tension and financial market volatility.

Continued Support for Gold

The World Gold Council recently reaffirmed gold’s role as a strategic reserve asset, highlighting continued central bank demand, geopolitical uncertainty and the potential for monetary policy easing as supportive factors for the market.

Meanwhile, analysts at Goldman Sachs continue to maintain a positive long-term outlook for gold, suggesting that sustained central bank buying could remain one of the structural drivers supporting prices over the coming years.

While short-term gold prices will continue to fluctuate in response to interest rates, inflation expectations and currency movements, many analysts believe continued institutional demand provides a strong long-term foundation for the market.

Our View

At Sterling Bullion Partners, central bank activity is one of the key indicators we monitor when assessing the long-term outlook for physical gold.

Although no single factor determines the future price of gold, sustained purchases by central banks continue to demonstrate the important role that physical gold plays within the global financial system. As governments diversify their reserves and seek assets that are independent of any single country’s financial system, gold remains a trusted store of wealth with a long history of preserving value.

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If you’re considering adding physical gold to your portfolio, Sterling Bullion Partners offers a carefully selected range of Royal Mint gold coins and certified gold coins, all sourced from trusted suppliers and delivered securely throughout the UK.