China’s gold acquisitions in recent months have far surpassed official figures, according to updated estimates from Goldman Sachs.
China’s actual gold buying much higher than reported
The People’s Bank of China (PBOC), the country’s central bank, stated it purchased 15 tonnes of gold in June. However, data from the London over-the-counter (OTC) market indicates China actually bought 40 tonnes that month.
In May, a similar divergence appeared. Official records put gold acquisitions at 10 tonnes, but research using global OTC data suggests China secured 48 tonnes. In total, China is estimated to have purchased 88 tonnes through OTC channels during May and June alone, outpacing the year-to-date official total.
The Kobeissi Letter, a financial analysis platform, drew attention to the scale of these OTC purchases, highlighting that June marked China’s second-largest monthly gold acquisition since early 2025. The platform suggests that these discrepancies point to China accumulating substantially more gold than its official data reveals.
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AAPLChina’s actual gold purchase through the London OTC market in June reached 40 tonnes, 167% higher than the 15 tonnes listed by the central bank for the same period.
Despite the gap, the central bank’s records still show a steady increase in reserves. In July, the PBOC added 20 tonnes to its total, making it the largest monthly addition since October 2023. The bank’s gold reserves have now climbed to a record high of 2,366 tonnes, marking 21 straight months of growth.
Mini dictionary: Over-the-counter (OTC) gold market, a decentralized trading venue where gold transactions occur directly between parties, bypassing centralized exchanges. The London OTC market is the world’s leading centre for off-exchange gold trading, often involving large volume institutional trades.
Record-low U.S. Treasury holdings, rising gold futures interest
The increase in gold reserves has come as China continues to reduce its holdings of U.S. Treasuries. The country’s holdings declined to $633.4 billion in June, their lowest point since 2008. This ongoing decrease is seen as part of a broader diversification of China’s foreign reserves.
| Asset | June 2024 | Change | Historical Reference |
|---|---|---|---|
| Gold (PBOC official) | 15 tonnes | – | Officially reported |
| Gold (London OTC estimate) | 40 tonnes | +167% | Largest since early 2025 (2nd largest) |
| U.S. Treasury Holdings | $633.4 billion | Lowest since 2008 | Declining trend |
| Open Interest (Shanghai Gold Futures) | ~400,000 lots | 5-year high | Highest since September 2025 |
Interest among domestic investors in gold is also rising. Open interest on the Shanghai Futures Exchange approached 400,000 lots this week, reaching its highest level in five years. Global Markets Investor, a financial data outlet, noted that the recent jump, one of the five largest two-day surges in years, suggests Chinese investors are moving back into the precious metals market in significant numbers.
Gold prices have remained elevated, with the metal trading at $4,614 per ounce. Analysts observe that the combination of official central bank buying, sizeable OTC market transactions, and increased futures activity underscores persistent demand for gold from both Chinese institutions and retail investors.
Combined gold purchases through official and off-market channels, along with a historic rise in futures activity, highlight China’s growing appetite for precious metals as it diversifies reserves.
