China's Gold Reserves Post Sharpest Monthly Jump Since Late 2023

China's central bank accelerated its gold purchases for the fifth consecutive month in July, adding the most bullion to its reserves since October 2023, according to official data released on Friday.

The People's Bank of China (PBOC) increased its holdings to 76.08 million fine troy ounces by the end of July, up from 75.44 million ounces a month earlier. The 640,000-ounce addition, equivalent to nearly 20 metric tons, marks the biggest monthly increase since October 2023, when the central bank added 740,000 ounces.

The pace of buying has quickened steadily since March, when the PBOC added 160,000 ounces. In June, the central bank had added 480,000 ounces, which was then the largest monthly gain since October 2023.

The value of China's gold reserves rose to $306.35 billion at the end of July, up from $303.72 billion a month earlier.

The increased buying came as gold prices rose 0.84% in July, snapping a four-month losing streak and posting the biggest monthly gain since February. The price recovery was supported by softer U.S. inflation data and easing oil prices, which led traders to scale back expectations for further Federal Reserve interest rate hikes.

Spot gold was last traded above $4,310 per ounce.