China's central bank purchased around 48 tonnes of gold in May 2026, marking the largest monthly accumulation in over twelve months, according to estimates. This purchase continues a 20-month run of increasing gold reserves by the People's Bank of China (PBoC).
Ongoing Gold Reserve Expansion
The PBoC's gold holdings reached approximately 2,347 tonnes by the end of June, representing about 8.9% of the country's foreign exchange reserves. Official data indicate sizable acquisitions in both May and June, reflecting a deliberate strategy to strengthen and diversify the nation's reserve assets. Market observers are tracking these moves closely, considering their potential impact on global gold prices.
Despite China’s aggressive accumulation, prediction markets remain cautious about a significant surge in gold prices. Current odds suggest only a 2% chance that gold will reach $15,000 per ounce by the close of 2026, indicating skepticism among traders even as prices show potential for modest increases.
Further central bank announcements on gold purchases will be watched for clues on future reserve management, especially as geopolitical tensions, such as those in the Middle East or involving Sino-US relations, may increase demand for safe-haven assets like gold. also Federal Reserve interest rate decisions are expected to play a critical role in influencing price trajectories.
