China Continues Gold Buying Spree for 21st Month as Central Bank Purchases Head Toward 755 Tons in 2026

China added 19.9 tons of gold to its reserves in July 2026 for the 21st consecutive month, marking the longest continuous buying streak in its history, according to People's Bank of China data published via Bloomberg, bringing total reserves to 76.08 million troy ounces.

Global central bank purchases reached 289 tons during the second quarter of 2026, a 60% increase compared to last year according to the World Gold Council (WGC), while JPMorgan raised its annual central bank demand forecast to around 755 tons, which falls within the WGC and State Street forecast range of 750–850 tons.

South Korea's central bank ended a 13-year buying pause by adding gold to its reserves, while Goldman Sachs noted that China's purchases of approximately 20 tons per month contributed over 20% to the gains recorded by gold during 2026.

This shift reflects a deep structural trend in which central banks are accelerating efforts to diversify their reserves away from the US dollar. This transition systematically reduces the available supply of gold, reinforcing structural upward pressure on prices.

What do these terms mean?

People's Bank of China (PBoC): The central bank of China, responsible for managing the country's foreign exchange and gold reserves.

World Gold Council (WGC): An international organization representing key gold producers and publishing market demand and supply statistics.

Gold Reserves: The quantities of gold held by central banks as part of their official reserve assets.

Net Purchases: The difference between the amount of gold central banks buy and sell over a specified period.

Reserve Diversification: A strategy pursued by central banks to spread their reserve assets across multiple currencies and assets to mitigate risks.