The People’s Bank of China bought 650,000 fine troy ounces of gold in August, bringing its total reserves to 76.73 million ounces, approximately 2,386.57 metric tons. The value of these reserves reached $350.08 billion at the end of August, up from $306.35 billion at the end of July, a $43.73 billion increase in a single month. Gold now accounts for approximately 8% of China’s total foreign exchange reserves, which stood at $3.438 trillion. At this pace, China could purchase over 218 metric tons of gold per year, representing 6 to 7% of annual global production. This acceleration reflects Beijing’s strategy to diversify away from dollar-denominated assets and hedge against geopolitical risks.
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