China increased gold reserves to 76.73 million ounces
The People's Bank of China increased its gold reserves by 650,000 ounces in August, or approximately 20.22 tonnes, to 76.73 million ounces. This marked the 22nd consecutive month in which the Chinese central bank purchased gold, ECNS reports, citing data from the People's Bank of China.
The largest addition since November 2024
The August addition was the largest monthly increase in gold reserves since the central bank resumed purchases in November 2024. In July, reserves rose by 640,000 ounces. According to the publication, the acceleration in the pace of gold accumulation began in March.
As of the end of August, China's official gold reserves stood at approximately 2,386.57 tonnes. Their value was estimated at $350.08 billion. Gold accounts for less than 10% of the country's official reserves, which include foreign exchange assets and gold.
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Assessments of the reserve structure
Wang Qing, chief macro analyst at Golden Credit Rating International, noted that weakening expectations of a U.S. Federal Reserve rate cut in August contributed to rising international gold prices. According to him, the U.S. Treasury Department's announcement of expanding buybacks of long-term Treasury bonds heightened market concerns about U.S. fiscal risks and confidence in the dollar.
In Wang Qing's view, even with gold prices close to historic highs, the need to increase such reserves is growing due to the optimization of their structure. He believes that gold is widely recognized as the ultimate means of payment, while its purchases by central banks can strengthen confidence in sovereign currencies and create conditions for the international use of the yuan.
On June 2, the European Central Bank reported that by the end of 2025, gold's share of global official reserve assets had reached 27%, exceeding the share of U.S. Treasury bonds. According to the ECB, gold became the world's largest official reserve asset.
