China extends 21-month gold buying streak with 20-tonne July purchase near £3,250

China's central bank added 20 tonnes of gold in July 2026, extending its buying streak to 21 consecutive months. The monthly accumulation marks the largest increase since October 2023, underscoring persistent central bank demand amid geopolitical uncertainty and currency diversification concerns.

Global central banks demonstrate record appetite for gold. In the second quarter of 2026, they collectively acquired 289 tonnes, a 62 per cent year-on-year increase and the strongest quarterly performance on record. These institutional buyers continued accumulating when spot gold hovered near £3,220-3,250 per ounce, a pattern that historically precedes price appreciation.

China's strategy reflects deliberate repositioning. Since July 2015, the People's Bank of China has added roughly 2,000 tonnes to official reserves, shifting away from dollar-denominated assets toward non-correlated stores of value. Gold carries no default risk, cannot be frozen by sanctions, and performs across all economic regimes.

The trend is global. Across central banks worldwide, 89 per cent of policymakers expect holdings to increase over the next 12 months, with 45 per cent planning active accumulation. Over four years, central banks have purchased an average of 1,000 tonnes annually, double the rate of the preceding decade.

For UK investors, central bank buying provides a price floor. When institutions with trillion-dollar balance sheets commit to accumulation at current levels, retail investors gain confidence that spot prices near £3,250 represent compelling value. Factor in premium, VAT and delivery fees for all-in costs. This is not financial advice.