China's central bank expanded its gold reserves for the 19th consecutive month in May, adding 320,000 ounces to reach 74.96 million ounces (approximately 2,332 tonnes), according to data released by the People's Bank of China on June 7, 2026. China's total foreign exchange reserves reached $3.44 trillion by the end of May.

Globally, gold has overtaken the US dollar as the leading reserve asset. According to the European Central Bank's annual report on the international role of the euro released on June 2, gold accounted for 27% of total global official reserves by the end of 2025, while the share of US Treasury bonds fell from 25% to 22%. This marks the first time gold has surpassed US government debt as the largest component of central bank reserves worldwide, reflecting a strategic shift toward diversification away from single-currency dependence.

The central bank's continued gold purchases are not just a simple adjustment of its asset structure, but a highly strategic and forward-looking deployment of gold as a strategic resource amid profound global macroeconomic and geopolitical restructuring, said Gu Fengda, chief analyst at Guoxin Futures, in an interview with Caijing, a prominent business magazine.

He added that current lower gold prices offer greater value for central banks, and the structural trend of gold accumulation will not reverse due to short-term price fluctuations. China's steady buying "fundamentally reflects the strong buffer capacity provided by the country's complete industrial system, massive domestic market and sizable forex reserves." This also gives China ample policy space to treat gold as a long-term strategic asset rather than a short-term liquidity tool, Gu noted. 

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