China gold reserves rise most since 2023 even as bullion tumbles

SHANGHAI/BEIJING: China's central bank reported its biggest monthly increase in gold reserves in more than two and a half years in June, official data showed on Tuesday, although bullion prices tumbled.

China's ‌central bank ⁠maintained ⁠gold purchases for a 20th straight month, with its reserves hitting 75.44 million fine troy ounces by the end of June, versus 74.96 million a month earlier. The 480,000-ounce rise, equivalent to near 15 metric tons, marked the biggest ⁠monthly addition ‌since October 2023, when holdings rose by 740,000 ounces, according to data ⁠from the People's Bank of China.

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The value of ​the country's gold reserves, however, ​declined, amounting to $303.72 billion at the end of last month, down from $340.75 billion in May, the data showed.

The rise came despite a sharp decline in gold prices. ‌Spot gold tumbled 11.65% in June, the worst since October 2008, while breaking below the $4,000 an ounce ⁠mark briefly. The dollar strengthened and traders priced in a higher chance that the Federal Reserve would keep interest rates elevated. The Iran war also kept concern that inflation could remain sticky despite peace talks.