People’s Bank of China boosts Hong Kong gold reserves to support hub

The People’s Bank of China (PBOC) continued its month‑on‑month increase in gold holdings, adding about 20 metric tons in July – the strongest monthly purchase since October 2023 – and extending a 21‑month streak of rising reserves. Total gold reserves rose to roughly 76 million ounces, valued at over $306 billion.

The central bank is also accelerating the transfer of gold previously stored in London to Hong Kong. The move underpins Hong Kong’s newly trialled central gold‑clearing and settlement system, which aims to make the city a major international bullion‑trading hub and challenge established centres such as London and Singapore. PBOC Governor Pan Gongsheng reiterated the commitment to increase the allocation of foreign‑exchange reserves in Hong Kong, a pledge first made in early 2025.

Domestic demand is reinforcing the trend: Chinese investors poured more than $1.2 billion into gold‑backed ETFs during the longest inflow streak since March, with year‑to‑date ETF inflows reaching about $5.6 billion. The combined official‑sector buying and investor demand has helped keep gold prices around $4,200 per ounce.