China has led central bank purchases in recent months as it continues to diversify its reserves. That has helped keep prices afloat despite rising interest rates around the world, which typically undermine demand for non-interest-bearing gold bullion.
Official buying is key to this year's price forecast, according to the World Gold Council. The industry body expects central banks to continue to increase their holdings, albeit at a slower pace than last year when demand surged for alternatives to the dollar after the U.S. imposed sanctions on Russia's reserves.
Meanwhile, China's total gold and foreign exchange reserves rose to $3.204 trillion in July, up 3.2 percent year-on-year and 0.4 percent from the previous month.