China gold reserves rise for 19th straight month to 74.96 million ounces

The People’s Bank of China added 320,000 ounces of gold to its reserves in May, marking the 19th consecutive month of purchases. Total holdings now stand at 74.96 million ounces, equivalent to 2,331.52 tons. This steady accumulation has become one of the most persistent trends in global central bank reserve management. Beijing’s strategy is straightforward: reduce reliance on dollar-denominated assets. The logic is not new—China has long sought to diversify its $3.2 trillion foreign exchange hoard.

But the pace and consistency of these gold buys signal something deeper than tactical hedging. This is a structural shift, not a reaction to quarterly market moves. What a casual observer might miss is the compounding effect. At current buying rates—roughly 320,000 to 350,000 ounces per month—China’s official gold reserves have grown by over 6 million ounces since the streak began in November 2022. That is more than the entire annual gold production of a mid-tier mining country like Peru.

The PBOC is effectively absorbing a meaningful share of global mine supply each month. Geopolitical tensions have accelerated the move. Sanctions on Russia, the freezing of central bank reserves, and the weaponization of the dollar payment system have all reinforced the message: dollar assets carry political risk. Gold carries none. For Beijing, which holds roughly $800 billion in U.S. Treasury securities, even a modest reallocation away from Treasuries into bullion has outsized market implications.

The timing also matters. Gold prices have hovered near record levels above $2,400 per ounce, yet China continues to buy. This suggests price sensitivity is secondary to strategic necessity. The PBOC is not trying to time the market; it is building a position that will take years to complete. Other central banks are following a similar path. Poland, India, and Turkey have all been net buyers, but none with the scale or consistency of China.

The cumulative effect is a structural bid under gold prices that no single data point—jobs report, inflation print, or Fed decision—can easily disrupt. The real question is not whether China will keep buying, but at what point its gold holdings approach a meaningful share of total reserves. Currently, gold accounts for roughly 5% of China’s foreign reserves. For comparison, the United States holds over 70% of its reserves in gold, Germany over 65%.

Even a doubling of China’s gold share would require years of purchases at current rates. The streak is likely far from over.