Gold prices are showing signs of stabilizing after a sharp quarterly decline, with analysts suggesting a comeback is brewing despite the metal breaking below the critical $4,000 per ounce threshold.
The precious metal has shed more than 25% of its value from recent peaks, marking its lowest level in seven months, but underlying demand dynamics remain robust.
The acquisition, equivalent to roughly $480 million at current prices, underscores Beijing's strategic push to diversify reserves away from the US dollar.
The People's Bank of China (PBOC) has extended its unbroken streak of gold purchases to 20 consecutive months, adding approximately 14.93 tonnes to its official reserves in June 2026.
This consistent accumulation by the world's second-largest economy provides a structural floor for prices, even as broader market sentiment has cooled.
The acquisition, equivalent to roughly $480 million at current prices, underscores Beijing's strategic push to diversify reserves away from the US dollar.
Market watchers note that while short-term technical indicators remain bearish, the sustained institutional buying activity is altering the long-term supply-demand balance.