China continued its sustained gold-acquisition campaign in July 2026, extending its monthly buying streak to a 21st consecutive month according to officially reported data. The unbroken accumulation began in late 2024, making it one of the longest sustained central bank gold-buying runs on record.

At the end of July 2026, China's gold reserves stood at 76.08 million troy ounces, up from 75.44 million troy ounces reported at the end of June 2026. The reported value of those reserves rose to $306.35 billion, compared with $303.72 billion the previous month.

The continued accumulation comes amid a broader cooling in global central bank gold purchasing since the start of the year. Despite that moderation, Beijing has maintained its commitment to increasing its holdings of the precious metal month after month. Central bank gold demand surged after 2022, when the freezing of Russian foreign reserves underscored counterparty risks associated with dollar-denominated assets, prompting many monetary authorities to reconsider reserve composition.

Gold prices experienced a dip in May 2026 before stabilizing between June and July. A renewed upward move at the start of August has raised the possibility of additional buying flows returning to the gold market.

The US dollar has come under pressure amid the US administration's shifting attention away from assisting Japan in defending the yen. That macroeconomic backdrop, combined with gold's consolidation above the $4,000 per ounce threshold over two months, has created conditions that some market participants view as supportive for the precious metal.

However, the ongoing US-Iran conflict remains a significant factor to monitor. Higher bond yields and a more hawkish policy outlook from major central banks could still weigh on gold's trajectory during the second half of 2026.

Regarding the reported figures, it is worth noting the longstanding context around China's gold holdings. The numbers published reflect what is "officially" reported. Independent estimates, including those from the World Gold Council, have suggested that China's actual gold holdings may be approximately double what is publicly disclosed. Even at reported levels, gold remains a small fraction of China's total foreign exchange reserves, which exceed $3 trillion — meaning the strategic share allocated to bullion still trails that of most developed economies.

Central bank gold purchasing has been a key driver of bullion demand in recent years, with the People's Bank of China among the most consistent accumulators. The strategic rationale typically cited includes diversification of foreign reserves away from the US dollar and enhanced financial sovereignty.

Source: ForexLive