China Purchases Gold for 21 Consecutive Months Through July 2026

The People's Bank of China continued purchasing gold for the 21st consecutive month in July 2026, according to official data, pushing total Chinese gold reserves to new record levels amid Beijing's efforts to restructure its reserve asset portfolio.

This continuous streak represents a purchasing policy characterized by regularity and consistency since October 2024, as China did not stop adding to its stockpile of the yellow metal in any month during this period, indicating a long-term strategic decision rather than a mere response to market fluctuations.

This move came within the context of a broader international trend toward gold accumulation away from the dollar, particularly after escalating trade tensions and the imposition of financial sanctions on several countries, prompting central banks in Asia, Africa, and Latin America to diversify their reserves away from dollar-denominated assets.

Analysts at the World Gold Council observed that Chinese demand represents a key pillar supporting gold prices globally in 2026, adding to institutional inflows from exchange-traded funds and government purchases in other countries, in a scenario reflecting a structural shift in the composition of gold demand.

What do these terms mean?

People's Bank of China: The central bank of China, responsible for managing monetary policy and the state's reserves of foreign currencies and gold.

Dedollarization: A term describing countries' efforts to reduce their reliance on the US dollar in their reserves and international trade, often accompanied by an increase in gold holdings.