China Extends Gold-Buying Streak to 20 Months Amid De-Dollarization Efforts

China’s central bank extended its gold-buying streak to a 20th straight month in June, adding 480,000 troy ounces (14.93 tonnes) to its reserves as policymakers continued to accumulate bullion amid de-dollarisation discussions. The People’s Bank of China said gold holdings rose to 75.44 million troy ounces (2,346 tonnes) at the end of June. The latest addition extended the longest buying streak since 2015. The steady accumulation underscores Beijing’s drive to diversify its foreign-exchange reserves and reduce dependence on US-denominated assets, even as gold still accounts for less than 10 per cent of China’s reserve portfolio, according to the World Gold Council. Separately, China’s foreign exchange reserves stood at US$3.4163 trillion at the end of June, down US$26 billion, or 0.75 per cent, from the end of May, according to the State Administration of Foreign Exchange. Analysts say the metal has become increasingly important as policymakers seek assets that are insulated from sanctions risk, geopolitical tensions and volatility in the United States’ financial system. Beijing’s gold-buying campaign is increasingly viewed as part of a long-term strategy focused on reserve security and de-dollarisation. The purchases came as spot gold traded around US$4,140 an ounce on Tuesday after slipping 0.6 per cent from a two-week high. Bullion has rebounded more than 3 per cent from its late-June low and gained more than 2 per cent over the past week – the first weekly advance since May. Prices eased on Tuesday as a stronger dollar encouraged profit-taking ahead of the release of the US Federal Reserve’s June meeting minutes.