PBOC increased its gold reserves for the seventh consecutive month, up 60,000 ounces MoM.

In May, the People's Bank of China (PBOC) increased its gold reserves for the seventh consecutive month, but the pace of increase slowed further, while foreign exchange reserves rose steadily.

According to data released by the People's Bank of China and the State Administration of Foreign Exchange (SAFE) on Saturday, China's gold reserves stood at 73.83 million ounces (approximately 2,296.37 mt) at the end of May, up 60,000 ounces (approximately 1.86 mt) MoM. This marked the seventh consecutive month of gold reserve increases. For comparison, the increase was 70,000 ounces in April and 90,000 ounces in March, indicating a further slowdown in the pace of increase in May.

Regarding gold prices, spot gold fell more than 1.2% on Friday, the non-farm payrolls day, closing at $3,311.86 per ounce.Zhang Yu from Huachuang Securities believes that the world is currently in a period of comprehensive restructuring across multiple dimensions, including technology, military affairs, and wealth, and various uncertainties may persist globally in the future. Therefore, gold trading may not have ended yet. Gold not only has room for absolute price increases but can also reduce the volatility of asset portfolios, making it an important asset for allocation.

Meanwhile, statistics from the SAFE showed that as of the end of May 2025, China's foreign exchange reserves stood at $3,285.3 billion, up $3.6 billion from the end of April, representing a 0.11% increase. The growth rate also slowed.

The SAFE stated that in May 2025, influenced by factors such as the fiscal policies, monetary policies, and economic growth prospects of major economies, the US dollar index fluctuated slightly, and global financial asset prices showed mixed performance. Factors such as exchange rate conversion and changes in asset prices collectively contributed to the rise in foreign exchange reserves during the month. China's economy continued to rebound and improve, with the quality of economic development steadily rising, providing support for the basic stability of foreign exchange reserves.