China, the world's second-largest economy, is actively participating in the 'Gold Game' centered around gold. According to official data, China is continuously increasing its gold reserves, making a significant gold purchase in June. This marks the twentieth consecutive month of such activity by China.
Largest Purchase in Recent Years
According to Reuters, the People's Bank of China significantly increased its gold reserves in June. The gold purchase made by China last month was the largest monthly purchase in the last two and a half years. This continuous process of acquiring gold by the Chinese central bank has been ongoing for twenty-five months.
Dynamics of Gold Reserves
By the end of June, China's gold reserves reached 75.44 million troy ounces. This is compared to the level of 74.96 million recorded in May 2026. According to data from the People's Bank of China's gold reserves, the increase of 480,000 ounces amounts to approximately 15 metric tons and is the largest monthly increase since October 2023. Previously, in May, the People's Bank of China added 320,000 ounces of gold to its reserves.
Purchases Despite Price Decline
Notably, China continues to actively buy gold even during a period of declining global prices for the precious metal. This has affected the value of China's gold reserves: by the end of June, their value was $303.72 billion, whereas in May it was valued at $340.75 billion. In the global market, the price of physical gold fell by 11.65% in June, which was the worst decline since October 2008. At certain points, gold dropped below the $4,000 per ounce mark.
China's Strategy Regarding Gold
The question arises as to why China continues to build up reserves even when the price of gold is falling. China's strategy regarding gold is to strengthen its own economy and enhance its influence in the global economy. The constant purchase of gold is part of China's long-term economic strategy. It seeks to reduce dependence on the US dollar by adding safe assets like gold to its currency reserves. Gold is traditionally considered a safe haven during times of crisis or global tension, and it is not controlled by any other state. Although China acquires gold as a protective measure, this step may help maintain high global gold prices, which will affect the world economy.