China Makes Largest Gold Purchase Since 2023 as Bullion’s Price Surges 8%

China made its largest monthly gold purchase in nearly three years and continues a massive accumulation streak, while other central banks have refocused on the precious metal.

This is among the reasons behind the asset’s price resurgence over the past week, in which it gained 8% from bottom to top.

China Buys Big

Data provided by The Kobeissi Letter shows that the People’s Bank of China (PBOC) added approximately 640,000 troy ounces, or roughly 20 tons, of gold in July alone, making it the biggest single-month purchase since October 2023.

Its streak has extended to a highly impressive 21 consecutive months of buying gold. The reserves climbed to just over 76 million ounces at the end of July from under 75.5 million in June. Current prices show that the country’s gold stash is worth over $306 billion.

Perhaps the bigger story here is the pace at which China is accelerating its purchases. It added only 160,000 ounces in March, followed by progressively larger acquisitions over the subsequent months. June’s 480,000-ounce accumulation was already the biggest in almost three years, only to be beaten by July’s acquisition.

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