Despite a significant recent correction in international gold prices, central banks worldwide have not slowed their pace of accumulating gold. Latest data shows the People's Bank of China added 15 tons of gold last month, the largest single-month increase this year, marking the 20th consecutive month of growth in China's official gold reserves. To date, China's official gold reserves have risen to 2,346 tons, with cumulative additions exceeding 40 tons year-to-date.

Against the backdrop of sustained buying by the Chinese central bank, the international gold market has just undergone a notable price adjustment. Gold prices previously broke below the 200-day moving average near $4,500 per ounce, exacerbating technical selling pressure, and subsequently dipped below the $4,000 mark. Although short-term price movements may not quickly form sustained upward momentum, market views suggest the area around $4,000 is becoming a key support zone closely watched by investors. Official buying from global central banks is seen as one of the important factors supporting gold prices. A head of commodity research pointed out that as gold prices fall, official sectors tend to increase buying intensity, indicating that the price decline has not changed official institutions' long-term allocation interest in gold.

For central banks, gold is not merely a price asset but a crucial tool for diversifying official reserves, coping with external uncertainties, and enhancing reserve stability. In recent years, global central banks' interest in allocating gold has continued to rise. Even though gold yields no interest, its stability, liquidity, and safe-haven attributes as a reserve asset remain valued by official sectors during times of high uncertainty in the global economy and financial markets. This increase in holdings reflects more of an optimization of reserve structure rather than a judgment on short-term gold price fluctuations.

Besides China, other emerging market central banks are also using price adjustments to increase gold reserves. Data shows the Central Bank of Uzbekistan added 9 tons of gold to official reserves in June, bringing its net purchases this year to 41 tons, making it one of the second-largest official gold buyers this year. The National Bank of Poland has added 64 tons of official gold reserves so far this year as of May, remaining one of the most active official buyers. This indicates that amidst gold price corrections and intensified market volatility, some central banks are still actively positioning.

Over the past few months, global central bank gold demand fluctuated due to rising energy prices, foreign exchange market volatility, and currency pressures in some countries, with some nations periodically liquidating gold reserves to support their local currency exchange rates. However, as earlier energy shocks gradually ease, official sector configuration demand for gold is expected to strengthen again in the second half of the year. The reasons for central banks increasing gold reserves remain unchanged: official reserve diversification, reducing reliance on single-currency assets, and coping with geopolitical and financial market uncertainties are still the long-term factors behind central bank gold purchases. For some resource-exporting countries, as energy income recovers, how newly added foreign exchange reserves are allocated will also affect gold demand; if some funds do not flow into traditional dollar assets, gold may still become an important option.

The current focus of the gold market is whether effective support can form near $4,000. From a technical perspective, after gold prices broke below the 200-day moving average, the short-term trend took a hit, and some trend-trading and speculative funds remain cautious. If gold prices continue to operate below key moving averages, short-term market sentiment may remain weak. However, from a fundamental perspective, central bank buying, official reserve diversification, geopolitical uncertainties, and global fiscal pressure still constitute mid-to-long-term support for gold. Therefore, the current gold market is not simply a logic of the bull market ending, but rather a temporary correction following a rapid rise. Short-term trends may continue to oscillate, but if central bank buying continues to strengthen, the area around $4,000 is expected to become an important zone for the market to rebuild confidence.