China increases gold reserves by 9.95 tonnes in May for 19th straight month of purchases

China’s central bank added 9.95 tonnes of gold in May, marking its 19th straight month of purchases and lifting total official reserves to 2,331.52 tonnes. The move supports the strategic bullish backdrop for gold as a reserve asset, even as China’s domestic gold market shows signs of cooling. Gold ETF assets in China have seen notable outflows, and Shanghai Gold Exchange withdrawals fell to 63.5 tonnes in May, the lowest since February 2020 and roughly half March’s level. The article suggests short-term price volatility may continue, but the long-term allocation case for gold remains intact. Broader FX reserves also rose to $3.4422 trillion, the highest since November 2015, aided by a firmer U.S. dollar and rising global asset prices.