Steady Accumulation: China's Strategic Gold Push
In a move reflecting a broader global shift in financial strategy, the People's Bank of China announced on June 7, 2026, that it expanded its gold reserves for the 19th consecutive month. In May alone, the central bank added 320,000 ounces, bringing its total gold holdings to 74.96 million ounces, or approximately 2,332 tonnes.
This steady accumulation is part of a wider fiscal landscape where China's total foreign exchange reserves reached a substantial $3.44 trillion by the end of May.
A Global Pivot Away from the Dollar
The trend in the Chinese mainland mirrors a significant transformation in global reserve management. According to an annual report released by the European Central Bank on June 2, gold has officially overtaken the US dollar as the leading reserve asset worldwide.
By the end of 2025, gold accounted for 27% of total global official reserves, while the share of US Treasury bonds dipped from 25% to 22%. This marks a historic milestone, signaling a strategic pivot by central banks toward diversification and a reduction in dependence on a single currency.
Strategic Depth and Long-Term Vision
Industry experts suggest that these purchases are far more than simple portfolio adjustments. Gu Fengda, chief analyst at Guoxin Futures, noted in an interview with Caijing that China's approach represents a "highly strategic and forward-looking deployment" of gold as a vital resource amid ongoing macroeconomic and geopolitical restructuring.
Gu emphasized that lower gold prices currently provide enhanced value for central banks, suggesting that the structural trend of accumulation is unlikely to be reversed by short-term market volatility. He highlighted that China's consistent buying strategy is fundamentally supported by the country's comprehensive industrial system, massive domestic market, and significant foreign exchange reserves.
Ultimately, this positioning allows China to treat gold not as a short-term liquidity tool, but as a long-term strategic asset, providing a robust buffer in an evolving global economy.
Reference(s):
China's central bank extends gold-buying streak to 19th straight month
cgtn.com
