China has reportedly acquired 48 tonnes of gold through the London over-the-counter market in May 2026, as estimated by Goldman Sachs. This represents the highest monthly volume in over a year, significantly surpassing the 10 tonnes officially reported by the People’s Bank of China for the same period. The discrepancy suggests that China may be accelerating its gold reserve accumulation beyond its public disclosures. Market observers interpret this as a potential strategy by China to diversify away from dollar-denominated assets amid ongoing global economic uncertainties.

Key Takeaways

• Goldman’s report suggests China’s May gold purchases were consistent with a strategy of accelerating reserve accumulation.
• Market pricing suggests participants may view the increased demand as supportive of higher gold prices.
• This activity aligns with China’s ongoing pattern of gold reserve increases, now extending to 19 consecutive months.

What to Watch

Market participants will be closely monitoring further announcements from China’s central bank regarding gold purchases, which could indicate ongoing reserve accumulation. Additionally, any indications from the Federal Reserve about future interest rate policies may impact gold price expectations. Analysts are also watching geopolitical developments that could affect safe-haven asset demand, influencing the likelihood of gold reaching higher price targets in July 2026.

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