China gold buying streak hits 19 months as PBOC adds 320K oz
The People’s Bank of China (PBOC) extended its gold buying streak to 19 months, adding 320,000 ounces of gold in May. The purchase lifts total PBOC gold holdings to 74.96 million ounces (about 2,332 tonnes) and is the largest monthly addition since December 2024.
This marks the longest uninterrupted gold buying streak in the modern reporting era that began frequent reserve disclosures in 2015. After an 18-month run ended in May 2024, purchases paused for six months and then resumed in November 2024; the PBOC has not missed a month since.
The data released June 7 also showed China’s foreign exchange reserves rising to $3.44 trillion, the highest level in more than a decade. While gold still represents a relatively smaller share of China’s total reserves than in countries like the US, Germany, or Italy, the May update is a key signal for central-bank reserve diversification.
For traders, the main watchpoint is whether the gold buying streak pace continues. If sustained, it could reinforce a broader bid for real assets and support risk hedging, while any slowdown could reflect changing reserve management priorities.
Neutral
This is a macro reserve/diversification update (PBOC gold buying streak and FX reserves), not a direct crypto policy or liquidity shock. A sustained gold buying streak can be interpreted as a cautious, real-asset preference, which may modestly support “hedge” narratives during volatility. However, the article does not signal an immediate change to China’s crypto regulation, capital controls, or broad risk appetite.
Historically, gold accumulation announcements tend to move sentiment at the margin—sometimes supporting USD risk-hedging trades—but they rarely translate into a strong, one-directional crypto move unless paired with FX/policy signals or a liquidity pivot. The key short-term driver for crypto will likely remain broader macro flows (USD, yields, global risk sentiment). Long-term, persistent central-bank reserve diversification could reinforce the structural case for assets perceived as hedges, but the effect on BTC/ETH is typically indirect.