China Extends Gold Buying Streak Even as Domestic Demand Cools

The State Administration of Foreign Exchange confirmed that the central bank’s latest purchase brings its total holdings to 74.96 million troy ounces. Alongside this bullion growth, China’s broader foreign exchange reserves climbed by $31.7 billion, hitting $3.44 trillion—the highest level recorded since November 2015. Authorities attribute this expansion to a stronger U.S. dollar and the steady performance of the nation’s export sector, which saw trade reach $2.39 trillion in the first four months of 2026.

However, the domestic appetite for gold has shifted significantly. Withdrawals from the Shanghai Gold Exchange fell to 63.5 tonnes in May, the lowest volume since the onset of the pandemic in early 2020. Market volatility has prompted investors to pull over RMB 10 billion from gold ETFs, while Hong Kong-listed miners, including Zijin Mining and Shandong Gold, saw their share prices drop as the previous momentum for bullion-linked assets faces clear divergence.