China’s central bank raised its official gold reserves by 19.9 tonnes in July, bringing the total to approximately 2,366 tonnes, according to data from the State Administration of Foreign Exchange. The addition marked the largest monthly increase since October 2023 and extended a continuous buying sequence to 21 months.

Reserves rose from 75.44 million fine troy ounces at the end of June to 76.08 million fine troy ounces by the end of July. Earlier purchases in 2026 included roughly 15 tonnes in June and 10 tonnes in May, taking cumulative acquisitions for the year so far to an estimated 60 tonnes. World Gold Council figures showed about 40 tonnes added in the first half of the year.

Reserve Valuation and Price Movements

The State Administration of Foreign Exchange valued the country’s gold holdings at $306.35 billion at the end of July, up from $303.72 billion a month earlier. The higher valuation tracked a 0.84 percent rebound in gold prices during July, with spot prices moving above $4,310 per ounce after four months of declines.

The sustained purchases form part of a longer-term effort by the People’s Bank of China to diversify official reserves away from traditional assets. Global central-bank demand also remained firm, with net purchases of 289 tonnes recorded in the second quarter and 345 tonnes across the first half of 2026, according to World Gold Council data.

In an annual survey of reserve managers conducted by the State Administration of Foreign Exchange, 89 percent of respondents expected total official gold holdings worldwide to increase over the next year. Forty-five percent anticipated that their own institutions would acquire additional gold in the coming months.

Hong Kong Strengthens Bullion Infrastructure

Alongside the rise in mainland reserves, Hong Kong authorities outlined plans to expand gold vault storage capacity to more than 2,000 tonnes by 2030, a roughly tenfold increase from current levels. Officials have also reintroduced U.S. dollar-denominated gold futures, established a central gold clearing system, and introduced new physical settlement arrangements.

A mechanism known as Delivery Connect, linking Hong Kong with the Shanghai Gold Exchange, now enables direct physical gold settlement between the mainland and the special administrative region. Reports have indicated that some bullion inventories managed by the People’s Bank of China have been increased in Hong Kong, with limited details released on any shifts from other locations.

London Maintains Leading Storage Position

Despite the expansion of Asian facilities, London continues to hold the largest concentration of gold storage. Vaults in the city held 9,464 tonnes as of June, more than four times the capacity Hong Kong aims to reach by the end of the decade. Daily clearances in London also remain substantial, with 16.1 million ounces processed in a recent monthly figure.

The combination of continued official buying by China and infrastructure upgrades in Hong Kong points to a dual approach of reserve accumulation and regional market development, while established Western centres retain their scale advantages for the time being.