For the eighth consecutive month, the Chinese central bank increased its gold reserves in June, despite the fact that the yellow metal is still trading near its record high of around $3,500 per ounce.
According to data released earlier this week, the People’s Bank of China acquired 70,000 ounces of gold last month. This brings the total increase in Beijing’s gold reserves to 1.1 million ounces, or 34.2 tons, since the recent buying spree began in November 2024.
The price of gold is still up 25% since the beginning of the year, which observers attribute primarily to the continued high demand from central banks worldwide. However, the ongoing geopolitical uncertainties, particularly in the Middle East, also ensure that the yellow metal remains in demand as a safe haven – just like the erratic trade policy of the US under US President Trump.
Gold Has Recently been Trading Sideways
Although gold has been trading sideways for some time, the ongoing purchases by central banks should support the price in the future. Continued concerns about a further expansion of the debt bubble in the US and a weaker US dollar are leading other nations to consider rotating out of US assets.
Beijing has been one of the largest gold buyers in recent years, as the Chinese authorities decided some time ago to diversify their reserves more. The latest purchases by the People’s Bank of China follow a six-month pause, after it had previously expanded its gold holdings for 18 consecutive months.
