China's Central Bank Unleashes Sustained Gold Buying Spree

The People's Bank of China (PBOC) has resumed its gold buying spree, marking the longest continuous streak since reporting began in 1999. After a six-month pause that ended in November 2024, the PBOC has been accumulating gold for nearly 20 consecutive months.

By mid-2026, the central bank had purchased over 40 tons of gold for the year alone, with June seeing the largest monthly haul since late 2023 at 15 tons. The buying spree is part of a larger trend among central banks globally, which saw net purchases hit 244 tonnes in Q1 2026.

The motivation behind this diversification away from the US dollar is straightforward: geopolitical tensions, trade disputes, and the weaponization of dollar-denominated financial infrastructure have made reserve managers nervous. Gold doesn't carry counterparty risk, making it an attractive option for central banks.

China's gold purchases could have a ripple effect on gold prices and crypto markets. Gold-backed cryptocurrencies like PAX Gold and Tether Gold may benefit from spillover interest as sovereign demand pushes physical gold prices higher.