China increased its gold reserves for the ninth consecutive month in July, reinforcing the prices of the precious metal through ongoing central bank purchases. The People’s Bank of China reported a rise of 740,000 troy ounces, approximately 23 tons. The current total stockpile stands at 2,137 tons, with an accumulation of around 188 tons since the purchasing trend commenced in November.

China, actively diversifying its reserves, has been a frontrunner in central bank gold acquisitions, playing a pivotal role in supporting stable prices despite global increases in interest rates. Such rate hikes typically diminish the demand for non-interest-bearing bullion.

According to the World Gold Council, official purchases will significantly influence price trends throughout the year. The industry body anticipates continued additions to central bank holdings, albeit at a slower pace compared to the surge in demand witnessed last year. This surge occurred as countries sought alternatives to the dollar following the US sanctions on Russia’s reserves in response to its invasion of Ukraine.

Simultaneously, China experienced a 3.2% YoY and 0.4% MoM increase in total foreign currency reserves, reaching $3.204 trillion in July.