October 12, 2026 — China’s central bank has expanded its gold reserves by approximately 23 tonnes in September 2026, extending its gold-buying streak to 23 consecutive months, according to data released by Chinese authorities. The reported increase of about 740,000 ounces was larger than the 650,000-ounce increase in August.
The September’s addition brought reported holdings to approximately 2,409.59 metric tonnes. This latest purchase represents the country’s largest monthly increase in nearly three years.
Why is China's Central Bank Buying More Gold?
China’s continued gold purchases reflect a broader strategy to diversify its foreign reserves and reduce its dependence on the US dollar. Gold is widely regarded as a strategic asset because it does not depend on the financial stability or repayment capacity of any single government. It can also help central banks manage economic uncertainty, currency fluctuations and geopolitical risks.
The latest accumulation comes as central banks worldwide continue to strengthen their gold holdings. China’s purchases also demonstrate its long-term commitment to maintaining gold as part of its national financial reserves, although Beijing has not publicly confirmed that reducing reliance on the dollar is the sole reason for its buying programme.
Furthermore, China’s sustained demand could support the global gold market, particularly when combined with purchases by other central banks and investor demand for safe-haven assets. However, gold prices remain influenced by interest rates, movements in the US dollar and wider economic conditions.
China’s latest move reinforces gold’s importance in global finance as governments seek to diversify their assets and strengthen financial resilience amid an uncertain economic environment.
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