China Extends Gold Buying Streak to 19 Consecutive Months Despite Decline in Reserve Value

China's official gold reserves increased for the nineteenth consecutive month in May 2026, according to data released by the People's Bank of China (PBOC), underscoring the country's ongoing strategy to diversify its reserve assets and strengthen its holdings of strategic resources.

The central bank reported that its gold holdings rose to 74.96 million troy ounces at the end of May, up from 74.64 million ounces at the end of April, reflecting continued official purchases of the precious metal.

Despite the increase in physical holdings, the total value of China's gold reserves declined to $340.75 billion at the end of May, compared with $344.17 billion a month earlier. The decrease was primarily driven by lower global gold prices during the reporting period.

Gold prices posted a third consecutive monthly decline in May as investors reduced safe-haven exposure amid a stronger U.S. dollar and growing expectations that interest rates could remain elevated for a longer period.

Persistent inflation concerns, fueled in part by higher energy prices, continued to support the U.S. dollar and weighed on precious metals markets. As a result, gold remained under pressure in early June, with spot prices recently trading near $4,330 per ounce.

Market analysts view China's continued accumulation of gold as evidence of a long-term reserve management strategy aimed at increasing the share of gold within the country's foreign exchange reserves, regardless of short-term fluctuations in global prices.