China spent a record $158.8 billion importing more than 1,000 tonnes of gold in the first eight months of 2026, driven by central bank purchases and retail safe-haven demand. The People’s Bank of China added 21 tonnes in September, extending its buying streak to 23 consecutive months amid efforts to reduce reliance on the U.S. dollar.
Central Bank Buying Pushes Reserves to 2,196 Tonnes
The People’s Bank of China expanded its gold reserves by 21 tonnes in September, marking its largest monthly purchase in three years and bringing total holdings to 2,196 tonnes, according to data from the central bank announced by Kitco News. This addition extends a buying streak to 23 consecutive months, the longest period of accumulation since at least 2015.
Carsten Menke, an analyst at Julius Baer Group, noted that the central bank’s primary motivation is political. He pointed to the weaponization of the U.S. dollar and the related desire to be less dependent on U.S. as core drivers behind the accumulation. Consequently, China has reduced its holdings of U.S. Treasuries to $618 billion in July, the lowest level since August 2008.
Marissa Salim, Senior Research Lead, APAC at the World Gold Council, noted that central banks have reported total purchases of 170 tonnes through August 2026. Salim observed that China and the Polish central bank continue to lead all sovereign buyers in 2026, with China reporting 80 tonnes added to its reserves year-to-date, second only to Poland.
Retail Shoppers and Holiday Demand in Shenzhen Market
While the central bank accumulates bullion to bolster reserves, retail consumers across China are turning to gold as a safe haven amid a struggling economy. In Shenzhen’s Shuibei district, a major wholesale hub for the precious metal, holiday shoppers rushed to buy jewelry as prices softened.
Xiao Lei, a gold seller, described heavy customer traffic during the week-long National Day holiday. We’ve had all kinds of customers, including tourists from Jiangsu and Zhejiang who are using the long holiday to come here and buy gold,
Xiao said as reported by the South China Morning Post, adding that most are young people from here in Guangdong.
Consumer demand was further spurred by a dip in domestic prices. Xiao noted that Shuibei’s gold price pulled back from more than 1,000 yuan (US$149.1) per gram to about 945 yuan.
Multiyear Asset Repositioning Drives Global Gold Prices
China’s total spending on gold imports reached $158.8 billion in the first eight months of 2026, surpassing the $96.5 billion spent on 886 tonnes during the entirety of 2025.
Both the central bank and private investors are diversifying their reserves and savings towards an asset with no counterparty risk, as part of a broader long-term wealth preservation strategy.
Lisa Liu, managing director at Gold Mountains Asset Management
Market strategists observe that lower domestic yields and weak alternative investments have lowered the opportunity cost of holding the precious metal in China compared to Western markets. Aakash Doshi, head of gold strategy at State Street Investment Management, noted that consumer gold imports hit a record in the first eight months of the year, while adding that surging premiums in domestic onshore prices indicate stronger winter seasonal demand.