TLDR:
- China’s June gold buying reached 40 tonnes via OTC, not the 15 tonnes reported officially.
- PBOC added 20 tonnes in July, its largest monthly purchase since October 2023.
- China’s U.S. Treasury holdings fell to $633.4 billion in June, lowest since 2008.
- Shanghai gold futures open interest hit five-year highs near 400,000 lots this week.
China gold buying has surged well beyond what official figures indicate, according to new estimates from Goldman Sachs.
The People’s Bank of China reported 15 tonnes acquired in June, but London OTC market data suggests actual buying reached 40 tonnes.
May figures show a similar gap, with 48 tonnes purchased through OTC channels versus 10 tonnes officially disclosed. The findings come as China’s holdings of U.S. Treasuries fell to their lowest level since 2008.
Official Reports Fall Short of Actual Purchases
Goldman Sachs data reveals a wide gap between reported and actual gold buying. China’s central bank listed June purchases at 15 tonnes, official records show. New estimates place true acquisitions through London’s OTC market at 40 tonnes that month.
The mismatch also appeared in May figures. Officials reported only 10 tonnes purchased, but OTC data suggests 48 tonnes changed hands.
Combined May and June buying reached roughly 88 tonnes through OTC channels alone, exceeding China’s entire officially reported total for the year so far.
The Kobeissi Letter shared the findings on X, noting June’s purchase ranked as China’s second-largest monthly buy since early 2025. The account described the gap as evidence China is buying more gold than official data indicates.
Despite the discrepancy, official numbers still show steady accumulation. The People’s Bank of China added 20 tonnes in July, its largest monthly purchase since October 2023. Total reserves now stand at a record 2,366 tonnes, marking 21 consecutive months of gains.
Treasury Holdings Slide as Futures Activity Climbs
China’s shift away from U.S. government debt continued alongside the gold buying. Treasury holdings dropped to $633.4 billion in June, the lowest level since 2008. The decline points to a broader move toward reserve diversification.
Domestic appetite for gold has also strengthened in recent weeks. Open interest on the Shanghai Futures Exchange spiked to nearly 400,000 lots this week. That figure marks the highest reading since September 2025.
Global Markets Investor detailed the surge on X, describing it as one of the five largest two-day increases in open interest over five years. The account attributed the rise to Chinese investors returning to precious metals with renewed force.
Gold currently trades at $4,614 per ounce, reflecting continued demand across markets.
The combination of central bank buying, OTC purchases, and futures activity signals sustained interest in gold among Chinese investors and institutions.
The post China Gold Buying Far Exceeds Official PBOC Reports, Goldman Sachs Data Shows appeared first on Blockonomi.
Source: https://blockonomi.com/china-gold-buying-far-exceeds-official-pboc-reports-goldman-sachs-data-shows/
Be the first to comment