China’s central bank accelerated its gold purchase

中文标题

中国央行加快黄金购买步伐

OCBC Research08/11/2026updated 10/17/2026

Citable research brief

Core conclusion · Tlines extraction

China's central bank accelerated gold purchases in July, adding 640,000 ounces, marking the 21st consecutive month of buying. This reflects a strategic diversification of reserves amid price weakness. Other key insights include softer July inflation data, with CPI at 0.5% YoY and PPI at 3.5% YoY, and robust exports driven by AI-related products. The policy stance remains accommodative but without major stimulus, while Hong Kong's retail sales slowed and Macau's property market shows tentative stabilization.

Institution: OCBC Research
Published: 08/11/2026
Research topic: Inflation · China CPI · China PPI
Time horizon: 1 month · current

Key arguments

PBOC accelerated gold purchases for a second consecutive month, adding 640,000 ounces in July, the largest since October 2023, to diversify reserves.
China's July CPI slowed to 0.5% YoY, below expectations, but core CPI rose 0.3% MoM, indicating resilient underlying demand.
PPI inflation eased to 3.5% YoY, with weakness in commodities but gains in AI-related manufacturing prices.
AI-related exports surged, with IC and ADP equipment exports up 71% YoY, supporting trade surplus.
Policy stance remains accommodative but no major stimulus, with focus on Q4 for incremental easing.
Hong Kong retail sales slowed in June, with softness in staples but strength in discretionary items.
Macau property prices rebounded 1.9% QoQ in Q2, but demand remains weak, suggesting short-term stabilization only.

Key numbers

PBOC July gold purchase: 640,000 ounces
Total gold holdings: 76.08 million ounces
China July CPI YoY: 0.5%
China July PPI YoY: 3.5%
July exports YoY: 23.9%
July imports YoY: 27.5%
Trade surplus: $112.5 billion
Hong Kong June retail sales YoY: 4.6%

Main risks

Global commodity price weakness could further drag PPI.
Weather disruptions may affect food prices and CPI.
Policy easing might be delayed beyond Q4.
Housing market in Macau could remain under pressure.
Hong Kong retail sales could continue to moderate.

Corresponding source evidence

We expect CPI inflation to edge up to around 0.7% YoY in August. · 1 month
PPI inflation also moderated, slowing to 3.5% YoY in July from 4.1% YoY in June and undershooting market expectations of 3.9%. · current

Conditions / invalidation

Weather disruptions and pork price stabilization support food prices.

Context: the conclusion is Tlines' automated extraction, not the institution's wording. Quoted evidence is publisher wording. Scope and date must travel with the conclusion.