China’s PBOC Extends Gold Buying Streak in May

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China’s central bank continued to increase its gold reserves during May 2026, according to official data released on Sunday, June 7, 2026, extending a record buying streak as gold prices remained under pressure from elevated interest rate expectations and persistent inflation concerns.

PBOC Adds More Gold to Reserves

Data from the People’s Bank of China (PBOC) showed that the country added approximately 320,000 troy ounces of gold to its reserves during May. The latest purchase marks the 19th consecutive month of gold accumulation, representing the longest uninterrupted buying streak since at least 2015, when the central bank began publishing more regular reserve updates.

The continued accumulation highlights Beijing’s long-term strategy to diversify foreign exchange reserves and reduce reliance on traditional reserve assets amid growing geopolitical and economic uncertainty.

Gold Prices Remain Under Pressure

Despite ongoing support from central bank demand, gold prices declined during May, marking their third consecutive monthly loss after reaching a record high in late January.

Market sentiment toward bullion has been weighed down by persistent inflation concerns and expectations that major central banks may keep interest rates elevated for longer than previously anticipated. Higher interest rates typically reduce the attractiveness of non-yielding assets such as gold.

Central Bank Demand Continues to Support Bullion

Global central bank purchases have remained one of the strongest pillars supporting the gold market in recent years. Analysts continue to view official sector demand as a key factor helping offset pressure from monetary policy expectations and fluctuations in investor sentiment.

In addition, analysts at Goldman Sachs recently indicated that geopolitical developments could encourage central banks to further diversify their reserve holdings, potentially leading to stronger gold purchases over the coming months.