China purchased 20.2 metric tons of gold in August, largest in 22 months

Gold reserves held by the People's Bank of China climbed by 650,000 ounces in August, marking the biggest monthly increase since October 2023.

The purchase extended Beijing's buying streak to 22 consecutive months. Accumulation accelerated as gold notched its strongest monthly advance since January.

Central Bank Continues Gold Spree Despite High Prices

The pace of Chinese gold accumulation has been transformed by months of steady buying. The PBOC added 30,000 ounces in February. August's total was more than 21 times that amount, based on SAFE data.

Reserves ended August at 76.73 million fine troy ounces. The 650,000-ounce addition equals roughly 20.2 metric tons.

The last larger purchase was in October 2023, at 740,000 ounces. August's total also exceeded July's 640,000 ounces.

The reported value of the reserves jumped to $350.08 billion from $306.35 billion. The $43.7 billion swing largely reflects the rise in gold prices.

Debasement Trade Fears Powered Gold's Advance in August

The purchases occurred during a strong month for gold. The metal rose roughly 10% in August, its best monthly gain since January.

The rally was partly driven by a revival of the so-called