China posts biggest monthly gold reserve increase in nearly three years

China's central bank extended its gold-buying streak to 22 months in August, recording the country's biggest increment in official gold reserves in almost three years, official data showed on Monday.

According to data from the People's Bank of China, the country's official gold reserves rose to 76.73 million ounces by the end of August, an increase of 650,000 ounces from the end of July, marking the 22nd consecutive month of expansion in its bullion holdings.

The latest addition marked the biggest monthly increase since October 2023, when the increment came in at 740,000 ounces, according to market tracker Wind Info.

August's increment was also up from 640,000 ounces in July and 480,000 ounces in June.

Meanwhile, the State Administration of Foreign Exchange said China's foreign exchange reserves stood at $3.4383 trillion at the end of August, up by $19.5 billion, or 0.57 percent, from the end of July, marking the second monthly increase in a row.

SAFE said the increase came as the US dollar index declined in August, while prices of major global financial assets showed mixed performance. The combined effects of currency conversion and asset price changes drove the rise in China's foreign exchange reserves, SAFE said.