CSOP Double Long Gold ETF (07299) has climbed more than 2% in Tuesday's trading session, extending its monthly gains to nearly 14%. The fund last changed hands at HK$23.88, up 2.49%, with turnover reaching HK$19.45 million.

Against the backdrop of significant volatility in global gold prices, the People's Bank of China continues to expand its gold reserves. Data released by the central bank on August 7 shows that China's gold holdings rose to 76.08 million ounces by the end of July 2026, an increase of 640,000 ounces from June. This marks the 21st consecutive month of additions. The pace of accumulation accelerated in July, with the monthly increase exceeding the 480,000 ounces added in June.

The trend extends beyond China, as central banks worldwide are actively boosting their gold reserves. A report from the World Gold Council indicates that global central banks purchased a net 289 tonnes of gold in the second quarter of this year, a 62% increase year-over-year. UBS forecasts that total central bank gold purchases for 2026 will remain elevated at between 750 and 1,000 tonnes. Even if private investment demand slows temporarily, sustained official sector buying is expected to provide a solid floor under gold prices.

This sustained accumulation by central banks acts as a key support mechanism, helping to cushion the precious metal against sharper declines during periods of economic uncertainty or market stress.