Beijing continued its steady accumulation, recording the biggest monthly inflow since October 2023, even as global gold prices tumbled sharply in June.
In June, China recorded the largest monthly increase in its gold and foreign exchange reserves in more than two and a half years, even as global gold prices fell sharply.
China’s reserves rise in June amid gold price declines
The People’s Bank of China continued its gold purchases for the 20th consecutive month, and by the end of June its reserves stood at 75.44 million troy ounces, up from 74.96 million in the previous month. An increase of 480 thousand ounces, about 15 metric tons, marked the largest monthly gain since October 2023, when reserves rose by 740 thousand ounces, according to data from the People’s Bank of China.
The value of the country’s gold and foreign exchange reserves decreased to $303.72 billion at the end of the month, compared with $340.75 billion in May.
The rise in reserves occurred amid a sharp decline in gold prices. The world price of gold fell by 11.65% in June – the worst monthly performance since October 2008 – and temporarily dipped below $4,000 per troy ounce. The dollar strengthened, and markets expected the Federal Reserve to keep rates high. Tensions from military actions in Iran also heightened fears of inflation despite peace talks.
These data underscore China’s strategic move to diversify its reserves and support financial stability amid volatility in the global precious metals market.
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