China's central bank buys gold for eighth straight month in June

China's central bank added gold to its reserves in June for the eighth straight month, official data from the People’s Bank of China (PBOC) showed on Monday.

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China's gold reserves rose to 73.90 million fine troy ounces at the end of June, from 73.83 million at the end of May.

China's gold reserves were valued at $242.93 billion at the end of last month, up from $241.99 billion at the end of May, central bank data showed on Monday.

"We expect the PBOC to remain a constant buyer during the next few years, driven by the desire to diversify their reserves out of the US dollar and - in an extreme case - to be less susceptible to potential US sanctions targeting the dollar," said Carsten Menke, an analyst at Julius Baer.

Gold, traditionally seen as a refuge from political and economic uncertainty, has hit multiple record highs so far this year on the back of uncertainty surrounding tariffs, potential for interest rate cuts, geopolitical conflicts and central bank buying.

In May 2024, the PBOC halted an 18-month-long gold purchasing spree, significantly impacting Chinese investor demand. However, the central bank resumed gold buying in November 2024.

In late June, the industry ministry said in a 2025-to-2027 implementation plan that China was aiming to increase

its gold resources by 5 per cent to 10 per cent and its gold and silver output by more than 5 per cent by 2027.