China buys gold for the eighth straight month

China continues to dominate the gold market, according to the latest data from the nation's central bank.

In a post on Twitter, Krishan Gopaul, senior analyst for the World Gold Council, said that the People's Bank of China bought 21 tonnes of gold in June, citing updated data from the central bank.

"This is the eighth consecutive month of buying, totaling 165 tonnes. Total gold reserves now amount to 2,113 tonnes," he said.

Over the last several months, analysts have noted that China's consistent demand for gold is part of a tactic to bring more international credibility to the yuan. At the same time, China's buying is part of a more significant de-dollarization theme globally.

"China doesn't want to hold dollars for trade as they have struck a number of trade deals with major commodity suppliers from pulp to oil around the world that are specified to trade and settle in renminbi," said Ralph Aldis, Senior Gold Portfolio Manager at U.S. Global Investors.

Aldis added that he expects that China's new gold buying spree has just started. He noted that China has the fifth biggest gold reserves in the world. 

"I think you have to benchmark their eventual holdings against the U.S., which stands at 8,133.46 tonnes," said Aldis, "I think China would need to perhaps double their holdings from its current level to going to the second largest holder to have much more alignment as a reserve currency."