The more gold prices fall, the more central banks buy! The People's Bank has increased its gold holdings for 20 consecutive months.

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The attitude of central banks around the world toward gold has always been a focus of attention, and China’s People’s Bank has also maintained a positive stance in this regard.

According to information released by the central bank, as of June 2026, China’s official reserve assets held 75.44 million ounces of gold, an increase of 480,000 ounces compared to last month.

This marks the 20th consecutive month since November 2024 that China’s foreign exchange reserves have increased gold holdings, and regardless of short-term fluctuations in gold prices, this attitude of increasing holdings remains firm.

19 months accumulated nearly 2.5 million ounces of gold

According to data released by the central bank, in November 2024, official reserves held 72.96 million ounces of gold, while the latest holdings have risen to 75.44 million ounces, accumulating an increase of 2.48 million ounces over 19 months.

At the same time, the value of the central bank’s gold assets increased from $19.3431 billion USD to $30.3724 billion USD, an increase of more than $11 billion, most of which was driven by the rise in international gold prices.

During the same period, China’s foreign exchange reserves increased from $3.27 trillion to $3.42 trillion, an increase of about $150 billion. This means that the new additions to China’s foreign exchange reserves mainly came from gold holdings.

Active timing, not passive allocation

Although the attitude remains consistent, China’s pace of increasing gold holdings has been quite orderly.

Looking only at the past 20 months, from November 2024 to February 2025 was a firm build-up period, with the central bank increasing holdings by an average of 160,000 ounces per month.

From March 2025 to February 2026, international gold prices surged from $2,600 to above $5,300, and the central bank proactively slowed its gold purchase pace, monthly increases dropped below 90,000 ounces, with some months only adding 30,000 ounces, avoiding the risk of chasing highs.

March 2026 saw a turning point in the market as gold prices continued to weaken. Against this backdrop, the central bank stepped up monthly purchases, with increases of 160,000, 260,000, and 320,000 ounces respectively in March, April, and May 2026.

In June, purchases doubled at the lows, precisely capturing the bottom. Spot gold that month dropped to a minimum of $3,942, a nearly 27% pullback from the year’s high of $5,405, and the central bank increased holdings by 480,000 ounces that month, a new 16-month high.

Research reports estimate that from November 2022 to September 2023, the central bank’s gold purchase scale had a negative correlation coefficient of -0.751 with international gold prices, confirming the strategy of buying on dips and not chasing highs.

Global central bank consensus to increase gold holdings

As of the end of June 2026, China’s gold reserves accounted for about 9% of official reserve assets, still lower than the global average of 27%.

By comparison, gold reserves as a proportion of official assets are much higher in the United States, Germany, and France—all well over 50%, and India has reached 17%.

Additionally, according to data from the World Gold Council, in the first quarter of 2026 global central banks had net gold purchases of 244 tons, up 17% quarter-on-quarter; net purchases in May totaled 41 tons, marking a new interim high.

The council’s survey shows that 45% of central banks surveyed plan to increase gold holdings in the coming year. Gold’s multiple values in crisis hedging, long-term value preservation, and risk diversification have transformed it from a traditional historical asset to a core strategic reserve proactively deployed by countries.

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