China continues its aggressive gold accumulation strategy, with recent data revealing a surge in unreported gold acquisitions through the London over-the-counter (OTC) market. According to industry sources, China acquired approximately 40 tonnes of gold via the London OTC market in June 2026—its second-largest monthly purchase since early 2025.
This volume is particularly striking given the People’s Bank of China (PBOC) officially reported only a 15-tonne increase in gold reserves during June, suggesting an underreporting of 167% compared to the actual gold being added through unofficial channels.
The pattern follows similar activity in May, when China reportedly acquired an estimated 48 tonnes through the OTC market. This figure is 380% higher than the 10 tonnes added to official reserves as declared by the central bank for that month. Put together, China’s estimated gold acquisitions through the OTC market totaled 88 tonnes for May and June alone, significantly outpacing the officially reported increase of 60 tonnes for all of 2026 to date.
The latest official figures show the PBOC added another 20 tonnes of gold to its reserves in July—the highest monthly increase since October 2023—raising China’s total official holdings to a record 2,366 tonnes.
Market analysts view these moves as indicative of Beijing’s efforts to diversify its reserves and potentially reduce reliance on the US dollar amidst uncertain global economic conditions. The substantial discrepancy between official reports and OTC market estimates suggests China may be accumulating gold quietly and at a pace that exceeds public disclosures.
The aggressive build-up in gold holdings underscores China’s commitment to bolstering its financial defenses amid ongoing global tensions and market volatility, especially with Donald Trump’s presidency in the United States potentially reshaping global trade and financial dynamics.
