China's central bank added 320,000 ounces of gold to its reserves in May, pushing its total to 74.96 million ounces and stretching its buying streak to 19 straight months.

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That's the longest run of continuous accumulation since the People's Bank of China (PBOC) started publishing regular reserve data back in 2015.

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And here's the part you should pay attention to: it was the biggest single monthly purchase since December 2024.

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The PBOC kept buying even as gold prices fell for a third month in a row. When a buyer that size keeps loading up while the price drops, that tells you the buying isn't about chasing a rally.

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Why a central bank buys into a selloff

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A central bank managing a national reserve doesn't trade the way you or I might. It isn't trying to time the bottom or catch a rally.

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It's building a position over years, sizing each purchase small enough that it doesn't move the market against itself.

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So a few bad months for gold prices aren't a reason to stop. For a buyer on a multi-year plan, it's a discount.

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Worth noting: China's gold made up only about 8.8% of its official reserves at the end of 2025, according to World Gold Council and European Central Bank data, while the global average for central banks sits near 27%. That gap is the whole thesis. It means China has a long way to go before its gold position even looks normal by world standards.

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The other number that matters

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While the gold pile grew, China's total foreign exchange reserves also rose by $31.7 billion, or about 0.93%, to $3.4422 trillion at the end of May. That's the highest level in roughly a decade, the strongest since October 2015.

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A stronger U.S. dollar and rising global asset prices did most of the lifting there, since reserves get marked in dollar terms.

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To be sure, none of this means gold only goes up from here. The value of China's gold holdings actually slipped to about $340.75 billion from $344.17 billion the month before.

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So if you're holding gold and watching month to month, steady central bank buying won't move the price on your schedule. Gold is a long-hold asset, and this is a long-hold buyer.

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But if you're watching the bigger picture, here's what to take away. The largest official buyer in the market keeps adding, sits far below the global norm, and has openly signaled there's room for more. That's a slow, patient bid underneath the gold price that isn't going away anytime soon.

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You don't have to guess what they'll do next. They've been doing it for 19 months.

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