China’s central bank extended its gold-buying streak to 23 consecutive months in September 2026, adding 740,000 ounces to official reserves and driving record import volumes as domestic households pivot toward bullion amid declining property and equity markets.
People’s Bank of China Extends Buying Streak
The People’s Bank of China significantly increased its gold holdings by 740,000 ounces in September 2026, marking the largest single-month purchase since it resumed official gold buying in November 2024 and extending its consecutive buying streak to 23 months. Official data released on October 7, 2026, showed that China’s total official gold reserves reached 77.47 million ounces, up from 76.73 million ounces in August.
According to figures cited by international trackers, China officially acquired 103 tonnes of gold in the first nine months of 2026, raising its total holdings to a record 2,410 tonnes. That accumulation places China behind France and Italy in the global official rankings, sitting just 27 tonnes behind France’s roughly 2,437 tonnes and 42 tonnes behind Italy’s approximately 2,452 tonnes.
China’s foreign exchange reserves amounted to $3.4003 trillion as of the conclusion of September 2026, registering a decrease of $38.1 billion, or 1.11%, compared to the end of August, according to figures published by the State Administration of Foreign Exchange on October 7, 2026. The drop was ascribed by the State Administration of Foreign Exchange to multiple elements, which encompassed a stronger U.S. dollar index, general declines in worldwide financial asset valuations, shifts in currency exchange rates, and fluctuations in asset prices.
Why Chinese Households and Central Banks Are Accumulating Bullion
The structural pivot toward hard assets spans both institutional strategy and everyday retail behavior. At the sovereign level, analysts point to geopolitical risk management as a primary driver. Carsten Menke, an analyst at Julius Baer Group, noted that the PBOC’s main motive is political, pointing to the weaponization of the U.S. dollar and the related desire to be less dependent on U.S. Treasuries as a reserve asset.
Western sanctions freezing Russian central bank assets in 2022 underscored how foreign-held foreign exchange reserves can be restricted, while domestically vaulted gold remains insulated. Adding to the momentum of the buying is Beijing’s plan to build a deeper domestic gold market, prompting it to replenish inventories, as noted by Menke.
On the home front, ordinary Chinese savers face few attractive alternatives. The domestic property market remains mired in a multiyear downturn, the benchmark CSI 300 stock index dropped roughly 8% over the year, and benchmark one-year government bond yields fell to around 1.2%, compared to 4.46% in the United States. Ole Hansen, head of commodity strategy at Saxo Bank, observed that the opportunity cost of holding gold is also much lower in China than in many Western markets.
Record Import Spending and Consumer Shift Toward Bars and Coins
That domestic anxiety has translated into unprecedented import volumes and a sharp transformation in retail buying habits. Customs data show China spent a record $158.8 billion importing more than 1,000 tonnes of gold in the first eight months of 2026, surpassing the $96.5 billion and 886 tonnes imported during all of 2025. State Street Investment Management’s head of gold strategy, Aakash Doshi, noted that Chinese consumer gold imports reached an all-time high during the initial eight-month period of the current year.
While shoppers historically gravitated toward ornamental jewelry for festive milestones, industry data released by the China Gold Association reveal a profound structural divergence. In the first half of 2026, overall gold consumption reached 511.41 metric tons, up 1.23 percent year-on-year. Purchases of gold jewelry experienced a sharp decline of 33.88 percent down to 132.13 tons, whereas strong investment interest drove the uptake of gold bars and coins to 339.34 tons, surging 28.42 percent.
This demand cannot be suppressed, even with gold prices at historical highs,
said Zhao Xiangbin, chief strategist at Beijing Gold and Forex Fortune Investment Management.
We want our purchases to hold their pure value. It may not be wearable, but a plain gold bar provides real peace of mind.
Fu Hao, marketing manager in Beijing, via China Daily
China Buys Gold for 23 Consecutive Months
China’s accumulation mirrors a broader global trend documented by the World Gold Council. The third quarter saw global gold exchange-traded funds draw $31 billion in net inflows, setting a new all-time high for quarterly totals, as stated by the council. Reacting to the ongoing development, Siddharth Maurya, Managing Director of Vibhavangal Anukulkara Pvt Ltd, said, China’s central bank has been buying gold for 23 consecutive months, accumulating 740,000 ounces of the precious metal worth $3.1 billion in the latest round.
Over that period, Beijing has added 4.67 million ounces—about $19.5 billion — and grown its gold reserves to roughly $323.5 billion in total.
Despite a sharp September pullback exceeding 8% that brought spot prices down to about $4,176 an ounce from a January record above $5,500, institutional appetite remained strong. Global gold ETFs attracted a record $31 billion in inflows during the third quarter.