Full Breakdown
China Extends Gold Reserve Accumulation to 19 Months as FX Reserves Reach Decade High
6/8/2026, 8:04:45 AM
Gold Reserve Growth and FX Reserve Surge
Data from the State Administration of Foreign Exchange (SAFE) released on 7 June 2026 show that China’s official gold holdings rose to 74.96 million troy ounces at the end of May, up 320,000 ounces from the prior month, marking the 19th consecutive month of net purchases by the PBOC. Foreign-exchange reserves grew by $31.7 billion, or 0.93 percent, to $3.4422 trillion, the highest since November 2015.
Strategic Rationale
Officials say the purchases diversify holdings, reduce reliance on foreign-currency assets and bolster financial security. Analysts Zhao Qingming and Xi Junyang note that gold’s safe-haven status supports the yuan, hedges inflation and mitigates currency swings, while the PBOC’s controlled buying limits short-term price exposure.
Key Figures and Comparative Data
The 320,000-ounce May addition was the largest since December 2024, when the PBOC added 330,000 ounces. By the end of 2025, gold comprised about 8.8 percent of China’s official reserves, far below the 27 percent average for central banks worldwide, according to Wang Qing of Orient Golden Credit Rating International.
Official Statements & Responses
SAFE said the reserve rise reflects a firmer US Dollar Index and higher global asset prices, boosting the month-on-month increase. It also cited China’s steady economic progress and high-quality development as foundations for stability. PBOC officials called the purchases a measured effort to diversify holdings without exposing the portfolio to short-term market swings.
Criticism & Opposition
Wang Qing warned that China’s gold share remains low relative to peers, noting the 8.8 percent level is well under the 27 percent average and indicating considerable room for further accumulation.
Verbatim Quotes
- "Gold has rallied for four consecutive years, and the steep gains have led to price bubbles. Hence, the current price correction is inevitable and also reasonable." — Zhao Qingming, financial analyst
- "Price volatility is a normal feature of the financial market." — Zhao Qingming, financial analyst
- "Gold also serves as an effective hedge against inflation, offering stable value and protecting assets from erosion caused by overseas inflation." — Xi Junyang, professor, Shanghai University of Finance and Economics
- "This suggests considerable room for further accumulation." — Wang Qing, chief macroeconomic analyst, Orient Golden Credit Rating International
Conflicting Reports & Gaps
The gold-share figure of 8.8 percent is reported for the end of 2025, while the latest reserve data are for May 2026; a current share percentage is not provided, leaving a gap in assessing the present composition of reserves.
What’s Next
The PBOC has indicated that its gold-buying programme will continue if market conditions support diversification, while SAFE will monitor the US Dollar Index and global asset trends for future FX-reserve adjustments. Monthly releases will track further changes in both gold and foreign-exchange holdings.
