The People's Bank of China, the country's central bank, extended its gold-buying streak to 19 months in May, while the country's foreign exchange reserves reached the highest level in more than a decade.

According to central bank data released on Sunday, the PBOC added 320,000 ounces to China's official gold reserves last month to hit 74.96 million ounces as bullion prices entered a volatile downward channel.

The latest purchase marks the largest monthly increase since December 2024, when the PBOC added 330,000 ounces, market tracker Wind Info said.

Despite the consistent buying, China's gold reserves remain relatively low compared with global peers, Wang Qing, chief macroeconomic analyst at Orient Golden Credit Rating International, said.

Wang said that gold accounted for only about 8.8 percent of China's official international reserves by the end of 2025, far below the 27 percent average for central banks worldwide, citing European Central Bank data.

"This suggests considerable room for further accumulation," he said.

Meanwhile, the State Administration of Foreign Exchange reported Sunday that China's foreign exchange reserves rose $31.7 billion, or 0.93 percent, to $3.4422 trillion by the end of May — the highest level since late 2015 — amid a stronger US dollar and rising global asset prices.

The administration added that the country's steady economic progress provides solid support for reserve stability.