China's Central Bank Extends Gold Buying Streak to 23 Months
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| China's reported gold reserves increased again in September 2026, extending the central bank's buying streak as gold prices declined |
China's central bank added gold to its reserves for a 23rd straight month in September 2026, and it bought more than in any month in roughly three years. The People's Bank of China (PBOC) reported that its holdings rose by 740,000 ounces, about 23 tonnes, to 77.47 million ounces. The purchase came while the gold price fell more than 6% over the month, and at the same time China's customs data show record gold imports for the first eight months of the year. Analysts see a mix of motives, from reducing reliance on the dollar to households seeking safe assets. This article separates the official data from analyst opinion and flags the points where sources disagree.
What the Official Data Show
According to China Daily's report on the PBOC figures, published October 7, 2026, China's gold reserves rose by 740,000 ounces to 77.47 million ounces at the end of September. That marked the 23rd consecutive month of purchases. The increase exceeded 650,000 ounces added in August and 640,000 ounces in July. Using the standard conversion of about 31.1 grams per troy ounce, 740,000 ounces is roughly 23 tonnes, and total holdings are roughly 2,410 tonnes.
China Daily said the increase was the largest since September 2023, when reserves rose by 840,000 ounces according to the market tracker Wind Info. Another report, from BeInCrypto on Yahoo Finance, cited State Administration of Foreign Exchange (SAFE) records showing a matching 740,000-ounce rise in October 2023. The sources therefore differ on which month of 2023 to compare, but they agree the September 2026 purchase was the biggest in about three years.
Reserves Overall Fell
SAFE reported that China's foreign exchange reserves stood at $3.4 trillion at the end of September, down $38.1 billion, or 1.11%, from a month earlier. SAFE attributed the decline to currency translation and changes in asset prices, as the U.S. dollar index rose and prices of major global financial assets generally fell. This means gold holdings grew in volume while the broader reserve total shrank.
Buying as Prices Fell
BeInCrypto reported that gold closed September at $4,157.14, down from $4,449.24 at the end of August. It also said the September close was 21.2% below February's close of $5,278.51, the highest monthly close of 2026. The value of China's gold reserves fell to $323.52 billion from $350.08 billion despite the larger holdings. Those price and valuation figures come from that single report, which cites market data.
It is tempting to say the PBOC is buying dips. A BusinessToday report that quoted that view added a caveat: the figures alone do not establish the central bank's timing strategy or its motives for individual transactions.
How This Compares With Other Central Banks
The World Gold Council (WGC) said, as quoted by Kitco, that central banks reported total purchases of 170 tonnes through August 2026. Marissa Salim of the WGC said China and Poland continue to lead sovereign buyers in 2026. China had added 80 tonnes through August, second only to Poland's 98 tonnes, according to the BeInCrypto report summarizing WGC figures. Adding September brings China's reported 2026 purchases to roughly 103 tonnes.
A Discrepancy Worth Noting
Kitco reported the September purchase as 21 tonnes and put total reserves at 2,196 tonnes. That does not match the PBOC's ounce figures, which convert to about 23 tonnes and about 2,410 tonnes. Other outlets, including BusinessToday and the BeInCrypto piece, use the 23 and 2,410 tonne figures. This article follows the ounce data reported by the PBOC and treats Kitco's tonne figures as an outlier I could not reconcile.
Record Imports Tell a Bigger Story
The central bank is not the only buyer. CNBC, in an excerpt reposted by the Gold Anti-Trust Action Committee (GATA), reported that China imported more than 1,000 tonnes of gold in the first eight months of 2026, spending a record $158.8 billion, according to customs data. That compares with $96.5 billion and 886 tonnes for all of 2025. State Street's Aakash Doshi said consumer gold imports hit a record in the period, and that high onshore price premiums suggest stronger winter seasonal demand.
The gap between imports and official buying is large. A Bloomberg-based summary on goldsilver.com noted that the PBOC's reported 80 tonnes through August cannot explain more than 1,000 tonnes of imports. The same summary said Goldman Sachs analysts estimated the PBOC's real July buying at 35 tonnes, above the 20 tonnes it reported. I saw that estimate only in an excerpt, so treat it as a reported analyst view.
Why Analysts Say China Is Buying
Analysts quoted by CNBC offered several explanations:
- Reducing dollar dependence. Carsten Menke of Julius Baer said the PBOC's main motive is political, pointing to the weaponization of the dollar and a desire to rely less on U.S. Treasuries. He noted that Western governments froze Russia's central bank assets after 2022, which showed that foreign-held reserves can be restricted.
- Treasury holdings. CNBC reported that China's Treasury holdings reached an 18-year low of $618 billion in July, according to U.S. Treasury data.
- Few domestic alternatives. CNBC said households face a multiyear real estate slump. It reported the CSI 300 index down about 8% this year against a 13% gain for the S&P 500, and China's one-year government bond yield near 1.2% versus about 4.46% in the U.S.
- Lower opportunity cost. Saxo Bank's Ole Hansen said the cost of holding gold is much lower in China than in many Western markets.
- Domestic gold market. Menke also said Beijing's plan to build a deeper domestic gold market has prompted it to replenish inventories.
Unreported Buying
Menke estimated that the central bank bought around 190 tonnes this year by the end of August, including 110 tonnes that were not reported. That is one analyst's estimate, not an official figure. The PBOC's official numbers remain the only confirmed measure of its purchases.
Key Facts at a Glance
| Item | Figure | Source |
|---|---|---|
| September purchase | 740,000 oz (about 23 tonnes) | PBOC via China Daily |
| Total holdings | 77.47 million oz (about 2,410 tonnes) | PBOC via China Daily |
| Consecutive months of buying | 23 | PBOC via China Daily |
| Foreign exchange reserves | $3.4 trillion, down $38.1 billion | SAFE via China Daily |
| Imports, January to August | More than 1,000 tonnes, $158.8 billion | Customs data via CNBC |
| Reported 2026 purchases | About 103 tonnes | WGC and PBOC data via BeInCrypto |
| Gold price, September | Down more than 6% | BeInCrypto |
Confirmed, Reported and Unknown
Confirmed by official data as reported: the 740,000-ounce increase, total holdings, the 23-month streak and the decline in foreign exchange reserves.
Reported by outlets or analysts: gold price moves, valuation figures, the customs import data, motives and estimates of unreported buying.
Unknown: the PBOC's precise strategy and timing, how much gold is bought beyond reported figures, and whether October's data will show continued growth. BeInCrypto noted the PBOC's October data will show whether purchases keep growing while prices sit below their August level.
Editorial Analysis
The following is analysis, not reported fact.
The most useful point in this story is the gap between two numbers. Official central bank buying of about 103 tonnes this year sits next to more than 1,000 tonnes of imports in eight months. Most of China's gold demand appears to come from households, companies and other buyers, not the PBOC alone. That makes official reserve data an incomplete guide to Chinese demand.
The timing also matters. Central bank buying that continues as prices fall suggests the purchases are not driven mainly by price momentum. That fits the analysts' political and diversification explanations, but it does not prove them.
The streak itself is notable. CNBC described it as the longest purchasing run since at least 2015. Whether it continues will likely depend on prices, the dollar and geopolitics, none of which the data can predict.
Risks and Open Questions
- Data quality. Official figures may understate actual buying, as analyst estimates suggest, and outlets disagree on some conversions.
- Price volatility. The value of reserves moves with the gold price. China's gold holdings fell in dollar terms in September despite larger volumes.
- Interpretation risk. Attributing motives to the central bank rests on analyst opinion, not statements from the PBOC.
- Demand dependence. Household buying tied to weak property and equity markets could change if those markets recover.
What to Watch Next
Watch the PBOC's October reserve data, due in early November, for the 24th month of buying. Also watch the WGC's monthly central bank statistics, Chinese customs import figures and movements in China's Treasury holdings.
Frequently Asked Questions
How much gold did China's central bank buy in September 2026?
The PBOC reported adding 740,000 ounces, about 23 tonnes, bringing holdings to 77.47 million ounces.
How long has the buying streak lasted?
September was the 23rd consecutive month of purchases, according to the PBOC.
Why do some reports say 21 tonnes?
Kitco reported 21 tonnes and total reserves of 2,196 tonnes, which do not match the PBOC's ounce figures. Most other outlets use about 23 tonnes.
Are imports the same as central bank buying?
No. China imported more than 1,000 tonnes in the first eight months of 2026, while the PBOC reported adding about 80 tonnes in that period. Most imports reflect other buyers.
Why is China buying gold?
Analysts cite reducing reliance on the dollar and U.S. Treasuries, and households seeking safe assets amid weak property and equity markets. The PBOC has not stated its motives in the data reviewed.
Did gold prices rise or fall in September?
Gold fell more than 6% in September, according to a BeInCrypto report, closing at $4,157.14.
Is this investment advice?
No. This article is informational only. Gold
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