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PBOC Extends Gold Buying Streak to 22 Months with 18.4-Ton Purchase in August
Finance · Financial Conglomerates · yonhap_finance · 2026-09-07
The People's Bank of China continued its gold accumulation trend in August, adding 18.4 tons to its reserves despite rising global gold prices.
What Happened
Continuous Accumulation: The People's Bank of China (PBOC) has extended its gold-buying streak to 22 consecutive months, adding 18.4 tons (650,000 ounces) in August alone. This marks the largest monthly increase in gold reserves for China so far in 2023, signaling a sustained strategic effort to diversify its holdings.
Market Context: Global gold prices surged by approximately 10% in August, driven by a resurgence in hedging activity against a weakening dollar. Investors flocked to gold as a safe-haven asset following the U.S. Treasury's announcement regarding expanded debt buyback programs, which heightened concerns over inflation and currency devaluation.
Price Dynamics: While rising Treasury yields typically act as a headwind for non-yielding assets like gold, the consistent demand from central banks has provided significant support. The PBOC's aggressive purchasing strategy serves as a critical counterbalance to the downward pressure exerted by higher interest rates.
Future Outlook: Analysts suggest that the ongoing accumulation of gold by central banks will likely provide a long-term floor for gold prices. As global economic uncertainty persists and currency volatility remains a concern, gold is expected to maintain its appeal as a vital component of national reserve strategies.