China's record gold purchase boosts global central bank reserve trend

A recent survey of 76 central banks found that 89% expect their gold holdings to rise in the next 12 months, with 45% planning to increase their own reserves. Respondents highlighted gold’s crisis‑hedge, long‑term value preservation and portfolio‑diversification benefits, and forecast a higher share of gold in official reserves over the next five years while the dollar’s share may fall.

In May 2026, China bought an estimated 48 tonnes of gold on the London OTC market, the highest monthly volume in more than a year and far above the 10 tonnes publicly reported by the People’s Bank of China. The purchase marks the 19th consecutive month of gold accumulation and is seen as a move to diversify away from dollar‑denominated assets, potentially supporting higher gold prices.