The People's Bank of China has not only increased its gold holdings for 21 consecutive months, but also continued to implement prudent strategic gold purchase operations against the backdrop of gold prices falling by nearly 30% from their historical high at the beginning of the year. The latest reserve data from the People's Bank of China (PBOC) shows that it purchased 20 tons of gold in July, the largest monthly increase since October 2023. The pace of monthly gold purchases by the central bank has accelerated since March. Krishnan Gopál, senior analyst for Europe, the Middle East, and Africa at the World Gold Council, posted on social media on Friday, "This brings the net increase in gold holdings this year to 60 tons, bringing the total gold reserves to 2,366 tons." Gopál noted that while China dominates the gold purchase market, it is not the only central bank increasing its official gold reserves. In his social media comments, he mentioned that the Czech central bank increased its gold reserves by 1.7 tons last month, moving closer to its 100-ton reserve target. "The Czech central bank has made net purchases of 12 tons of gold so far this year, and its current gold reserves reach 84 tons," he said. Gopál also pointed out that the National Bank of Kazakhstan increased its gold reserves by more than 1 ton last month. Analysts say that the demand for gold from central banks is a key factor in the ability of gold prices to hold the crucial support level of $4,000 per ounce. In a research report released at the end of July, BMO Capital Markets commodity analysts stated that China's growing gold demand may be the biggest driver of rising gold prices in the second half of the year. The analysts also noted that a large portion of China's newly added gold reserves has not been publicly disclosed. The analysts stated, "Our latest analysis shows that China's on-site gold reserves are approximately 30,000 tons, higher than the officially published data. Currently, China's gold demand accounts for about one-third of global gold liquidity demand." At the same time, the analysts added that even with its already large undisclosed gold reserves, China's gold demand is likely to remain strong in the short term, and its gold reserves may eventually surpass those of the United States. The analysts pointed out that if China wants to achieve its goal of making the renminbi a comparable international reserve currency to the US dollar, it will need to significantly increase its gold holdings over the next five years. BMO analysts stated that although China has not set a specific gold reserve target, its domestic money supply can serve as an effective benchmark. Based on current gold prices, the Federal Reserve's gold reserves account for approximately 5% of the US M2 money supply. If China were to reach the same proportion, the central bank would need to hold approximately 18,000 tons of gold; while at the end of last year, China's corresponding gold reserves were approximately 5,222 tons. Analysts stated, "It's not surprising that China hasn't disclosed its ultimate target for gold reserves. However, considering its economic expansion and its publicly stated vision for the internationalization of the RMB, we believe that reaching the level of US gold reserves is only the minimum target, meaning that it would need to purchase approximately 2,500 to 3,000 tons of gold. Depending on the method of purchase, this target could be achieved within 2 to 5 years. And if it wants to establish the RMB's credibility globally, the actual reserve target is likely to be even higher."