The People's Bank of China continued buying gold in June, recording its longest consecutive purchasing streak since at least 2015, signaling Beijing's commitment to diversifying its reserves despite volatile prices of the precious metal.

Data released on Tuesday showed the central bank's gold holdings rose by 480,000 troy ounces to 75.44 million ounces last month. This marks the fastest pace of buying since October 2023, extending the consecutive purchase streak to 20 months.

Tue, 07 2026

Gold fell 12% in June, trading below $4,000 per ounce, recording its largest monthly decline since 2008. Rising inflation risks due to the Iranian war, along with the hawkish tone of the Federal Reserve, have boosted expectations of interest rate hikes, putting negative pressure on the non-yielding metal.

Major banks including Goldman Sachs and Deutsche Bank also lowered their year-end gold price forecasts.

Tue, 07 2026

Despite this, prospects remain supported by central bank purchases. A latest survey by the World Gold Council in June showed more central banks expect to increase their gold reserves over the next year.