China Adds 19.9 Tons to Gold Reserves in July

China's central bank added 19.9 metric tons of gold to its reserves in July, marking the largest monthly increase since October 2023 and extending the country's official buying streak to 21 consecutive months. The People's Bank of China's holdings rose to 76.08 million fine troy ounces at the end of July from 75.44 million ounces in June, according to data released by the State Administration of Foreign Exchange on August 7. The increase brought the total reported bullion reserves to approximately 2,366 metric tons, with the value of these holdings climbing to 306.35 billion yuan, up from 303.72 billion yuan at the end of June.

The July purchase follows earlier additions of roughly 15 tons in June and 10 tons in May, bringing the total accumulation for 2026 to about 60 metric tons. This sustained buying occurs as China seeks to strengthen Hong Kong's role as an international gold trading and storage hub. The city launched a central gold clearing system in July, revived U.S. dollar-denominated gold futures, and introduced new physical settlement arrangements, including a Delivery Connect mechanism with the Shanghai Gold Exchange. Authorities are also considering yuan-denominated...