07.07.2026 14:42
The People's Bank of China added 480,000 ounces of gold to its reserves in June, marking its largest monthly purchase since October 2023. This extended the bank's gold-buying streak to 20 months, showing continued strong demand from central banks for the precious metal despite a sharp decline in gold prices.
The People's Bank of China (PBOC) increased its gold reserves by 480,000 ounces in June, raising them to 75.44 million ounces. According to the released data, this purchase is recorded as the highest monthly gold acquisition since October 2023.
Thus, the bank's continuous gold buying process has reached its 20th month.
PURCHASES CONTINUED AS PRICES FELL
The People's Bank of China's strong purchase occurred during a period when gold prices sharply depreciated. In June, the ounce price of gold fell by 12% to below $4,000, marking the steepest monthly decline since 2008.
According to analysts, the drop in prices was influenced by rising inflation concerns following tensions between the US-Israel and Iran, as well as the US Federal Reserve (Fed) maintaining a cautious stance on interest rate cuts. High-rate expectations put pressure on gold, which yields no interest.
MAJOR BANKS LOWERED THEIR FORECASTS
After the sharp correction in gold, many international investment banks, led by Goldman Sachs and Deutsche Bank, revised their year-end gold price forecasts downward.
Experts assess that the high-interest rate environment may continue to pressure precious metals in the short term.
CENTRAL BANKS' APPETITE FOR GOLD PERSISTS
Despite the price decline, central banks' interest in gold continues.
According to a survey published by the World Gold Council in June, the proportion of central banks planning to increase their gold reserves in the next 12 months has reached its highest level ever.