CoinTelegraph
China's central bank added more than 10 tonnes of gold to its reserves in May, the largest single-month purchase since January 2025, lifting total holdings to a record 2,331 tonnes. The move confirms the People's Bank of China has resumed its accumulation pace after a brief plateau earlier this year.
Why it matters
Central bank gold buying — particularly from China — has been one of the structural pillars beneath gold's multi-year rally. A return to aggressive monthly additions signals that Beijing continues to treat gold as a strategic reserve asset, diversifying away from US dollar-denominated holdings at a time when geopolitical and trade tensions remain elevated. At 2,331 tonnes, China's official gold reserve is now at its highest recorded level, though analysts note the figure likely understates total state-linked holdings.
Market impact
Consistent sovereign demand of this scale provides a durable floor for gold prices regardless of short-term rate or dollar moves. For macro investors, the data point reinforces the thesis that de-dollarisation flows into gold are structural rather than cyclical. Commodities desks will watch whether May's pace is maintained through Q3, as a sustained run above 10 tonnes per month would mark a meaningful step-up from the 2024 average.
Frequently asked questions
-
Why did China accelerate gold purchases in May after slowing earlier in 2025?
The seed does not specify a stated reason, but the resumption of double-digit monthly additions aligns with China's ongoing strategy of diversifying reserves away from US dollar assets amid elevated geopolitical and trade tensions.
-
How does China's 2,331-tonne reserve compare to its recent trajectory?
The May addition was China's largest single-month purchase since January 2025, bringing total holdings to a record high and confirming that the multi-year accumulation trend remains intact despite a brief plateau earlier this year.
-
What does sustained Chinese central bank gold buying mean for gold prices?
Consistent sovereign demand at this scale provides a structural price floor for gold, as it represents non-discretionary buying that is largely insensitive to short-term interest rate or US dollar fluctuations.
WuBlockchain
CoinDesk
TheBlock
CryptoSlate
Crypto News
WatcherGuru