China increases gold reserves with largest purchase in three years
The People's Bank of China acquired 23 tonnes of gold in September 2026, marking its largest monthly purchase in three years and lifting total reserves to a record 2,410 tonnes as central bank buying supports gold prices.
According to a report by MarketCapOf, the People’s Bank of China acquired 23 tonnes of gold in September 2026, marking its largest monthly purchase in nearly three years and lifting the nation’s total gold reserves to a record 2,410 tonnes. This acquisition extends a 23-month streak of purchases by China. Meanwhile, the proportion of global reserves held in gold has expanded to approximately 20%, up from 5.77% in 2007, with ongoing central bank gold buying playing a major role in influencing the gold price forecast.
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China’s Gold Buying Spree Helps Hold Up Gold Prices
State Administration of Foreign Exchange figures, highlighted in Pluang’s analysis of China’s record gold imports, indicate that this accumulation phase is the longest since at least 2015. Gold now accounts for roughly 9% of China’s foreign exchange reserves. Throughout the year, Beijing has incorporated over 103 tonnes into its holdings, placing it behind only Poland.
Statistics compiled by The Market Ear reveal that gold’s proportion of worldwide reserves hovered between 6% and 10% for over ten years before accelerating post-2020, with China’s gold reserves contributing consistently to that upward trajectory.
Why China Keeps Buying Gold
Julius Baer Group analyst Carsten Menke noted that Beijing’s primary driver is political, motivated by a desire to reduce reliance on the US dollar and Treasury securities. Menke also calculated that an additional 110 tonnes purchased over the course of the year went unreported, suggesting the actual volume of China’s gold reserves could exceed official figures.
In addition to actions taken by the central bank, Chinese households are actively purchasing the precious metal. Amid struggles in the domestic property and stock markets, China allocated a record $158.8 billion toward more than 1,000 tonnes of gold imports during the first eight months of 2026.
Ole Hansen, head of commodity strategy at Saxo Bank, stated:
“The opportunity cost of holding gold is also much lower in China than in many Western markets.”
Gold Price Forecast Holds Firm As Central Banks Keep Buying
Although gold values fell by over 8% in September to roughly $4,176 per ounce—down from an all-time high above $5,500 reached in January—China’s continuous acquisitions have prevented further declines.
ING Bank commodities strategist Ewa Manthey observed:
“Chinese buying has become an important source of structural support for gold prices.”
State Street Investment Management’s Aakash Doshi projects a gold price target between $4,750 and $5,500 per troy ounce by the end of the first quarter of 2027. Furthermore, central bank gold buying is anticipated to persist, given that 45% of 74 central banks surveyed by the World Gold Council intend to increase their holdings. Even with these additions, China’s gold reserves remain under a third of the total held by the United States.
Ghana Eyes BRICS As Gold Demand Grows
Ghana, a prominent West African gold producer, is also seeking admission to the economic bloc. Africa Business Insider reports that the nation intends to formally apply for BRICS membership, aligning itself with countries like China, India, and Russia as China’s gold reserves reach new milestones. Foreign Affairs Minister Samuel Okudzeto Ablakwa disclosed the initiative on October 6 via a statement published on X:
“On the occasion of this important visit, I announced Cabinet’s strategic decision to apply for BRICS membership. The Government of Ghana is determined to position Ghana as a reliable friend to all as we expand our geopolitical and economic frontiers, anchored fundamentally on our national interest and freedom of choice in this fast-evolving multipolar world.”
Certain developments could potentially soften demand. Hansen pointed out that a rebound in China’s equities and real estate sectors, an appreciation of the yuan, or elevated deposit rates might weigh on consumer purchasing. A substantial shift away from gold would require central banks to abandon reserve diversification efforts alongside an easing of geopolitical tensions, scenarios he does not foresee in the near term. With growth observed across China’s gold reserves, gold’s overall share of global reserves, and central bank gold buying, the gold price forecast heading into 2027 maintains a positive outlook.
Frequently Asked Questions
How much gold did China add to its reserves in September 2026?
The People’s Bank of China added 23 tonnes of gold in September 2026, bringing its total reserves to a record 2,410 tonnes.
What is driving China’s continuous gold purchases?
Analysts note that Beijing’s main motivation is political, aimed at reducing reliance on the US dollar and Treasury securities, while Chinese households are also buying heavily due to struggles in local property and stock markets.
What is the gold price forecast for early 2027?
Aakash Doshi of State Street Investment Management forecasts gold prices to reach between $4,750 and $5,500 per troy ounce by the end of the first quarter of 2027.
Which country is seeking to join BRICS amid rising gold interest?
Ghana, a major West African gold producer, has announced its cabinet’s strategic decision to formally apply for BRICS membership.
How much have global reserves shifted toward gold?
Gold’s share of global foreign reserves has climbed from 5.77% in 2007 to approximately 20% in the latest data.
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