PBOC makes its biggest monthly gold purchase since 2023

The People’s Bank of China reported a significant increase in its gold reserves in August¹. Holdings rose to 76.73 million troy ounces at the end of the month, up from 76.08 million in July². That is an increase of 650,000 ounces, or about 20 tonnes, and extends the buying streak to twenty-two months³.

IndexBox put the addition at 20.2 tonnes and called it the biggest monthly increase since October 2023⁴. Binance reported the same 650,000-ounce purchase and the same comparison with October 2023⁵. China Daily said the purchases came amid a broader rebound in central bank gold demand⁶, and the disclosure was published this month as part of the routine reserve update¹.

Why it matters to investors

The official bid arrived while the price was going nowhere. Gold gained 0.66% to $4,405⁷ and returned above $4,400 as the dollar weakened ahead of US inflation data, with analysts noting that central-bank purchases had continued⁸. Kitco reported gold sliding to $4,400 as rate-hike odds firmed before next week’s Fed decision⁹.

Binance attributed that pullback to higher US Treasury yields, hawkish remarks from Fed Chair Warsh, and stronger-than-expected nonfarm payrolls⁵. In other words, the metal has been trading against the rates path while a price-insensitive buyer keeps adding^3,8.

Reserve managers are not the marginal seller. UBS remains bullish on gold’s long game, with 45% of surveyed managers expecting their own holdings to increase over the coming year¹⁰. China Daily framed the Chinese purchases as part of that wider official trend rather than as an isolated move⁶.

What to watch

The streak itself is the signal^3,6. A pause after twenty-two months would remove a steady buyer that has been adding through both strength and weakness in the price^2,10.

The near-term swing factor is US data and the Fed⁹. Firming rate-hike odds have been enough to cap the metal even with official buying underneath it⁵, and the inflation print lands before the decision⁸.

The third is the pace. August’s addition was the largest in nearly three years⁴, so the next monthly reserve update will show whether that was a step change or a single outsized month¹. The reserve total itself is the running record: it stood at 76.08 million ounces in July before the August purchase took it to 76.73 million², and each subsequent print sets the new baseline against which the streak is measured³.