In front of the US gold mountain, a gold “hill” in China is growing. It started with Trump’s election

June was the eighth consecutive month in which the People's Bank of China was active in the gold market. Official reserves of the precious metal increased by more than 2 tons, but their share in total foreign exchange reserves is still the smallest among the leading countries with mountains of gold in their treasuries.

The People's Bank of China's gold reserves increased by 70,000 troy ounces in June and stood at 73.90 million ounces at the end of the month. Resources royal metal increased by approximately 2.18 tons, and the official China's reserves already amount to 2,298.51 tons.

The value of Chinese gold at the end of June was more than 242.93 billion dollars and accounted for over 6.69 percent of total reserves currency assets of the state, valued at USD 3.627 trillion, compared to over 6.73 percent. reported at the end of April. Total reserve assets increased by 33,617 billion dollars, mainly due to the increase in the value of reserves in foreign currencies by $32.167 billion

The increase in the value of gold alone amounted to USD 943 million, which was due to June purchases and the increase in the average monthly price of gold according to LBMA data by 2.17 percent, which was the highest in history last month and amounted to USD 3,351.70 per ounce.

It is worth emphasizing that the People's Bank of China is constantly increasing official gold reserves from November 2024. Then the gold "hill" was increased by 160 thousand troy ounces of gold , or almost 5 tons. In In December, 330,000 ounces were added, which already meant more than 10 tons. In January, China's gold reserves increased by another 160,000 ounces, the same as in February. In March 90 thousand ounces , or 2.8 tons , were added In April, there were 70 thousand ounces, which was equivalent to 2.18 tons . A month earlier Chinese central bank authorities bought 60 thousand ounces, which is less than 1.87 tons. Since the beginning of the year, approximately 19,026 tons have been added to the treasury. In this respect It will be second only in 2025 Polish NBP.

According to July data from the World Gold Council and after taking into account the latest report of the People's Bank of China, official gold reserves of the Middle Kingdom as a share of total foreign exchange reserves are still the smallest among the top ten countries with the largest number precious metal in the vaults of their central banks. The best in this respect were mountains of gold in the United States (78.5 percent) and Germany (77.6 percent). the ratio of gold to currency reserves was at a similar level as China in Japan (6.9 percent).

China resumed gold purchases after Donald Trump's election The president of the United States. They then interrupted the 6-month period without purchases that came after 18 months of continuous increase in reserves. This in turn was preceded by the " zloty silence” lasting between 2019 and 2022. Since when did she start the current series of purchases, China's official gold reserves increased by 1.1 million troy ounces, or approximately 34.2 tons.

Although the rally Gold prices have shown signs of cooling recently , with prices ending June with minor changes, continued purchases by central banks are likely will remain a strong support for the entire trend, which is also supported by the persistent concerns about the growing US fiscal deficit and the weakening dollar as the main reserve asset of many countries.

Michal Kubicki

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