The People’s Bank of China (PBOC) has increased its gold reserves for 23 consecutive months, while the nation’s overall gold imports reached a record high in the first eight months of 2026. Analysts attribute the trend to the central bank’s strategy of diversifying its reserves and domestic investors seeking alternative assets amid economic conditions that include a downturn in the property and stock markets.
According to data from China’s State Administration of Foreign Exchange, the PBOC added approximately 23 tonnes of gold to its reserves in September, marking its largest single-month acquisition in nearly three years. This continues the longest purchasing streak recorded since at least 2015.
In addition to central bank activity, broader imports of the metal have surged. Chinese customs data shows the country imported over 1,000 tonnes of gold, valued at $158.8 billion, between January and August 2026. This figure surpasses the total for all of 2025, when 886 tonnes were imported at a cost of $96.5 billion. Aakash Doshi, head of gold strategy at State Street Investment Management, noted that consumer gold imports hit a record during this period.
Analysts have offered several explanations for the increased demand. Carsten Menke, an analyst at Julius Baer Group, stated the PBOC’s actions are related to a desire to reduce dependence on U.S. Treasurys as a reserve asset. This follows actions by Western governments in 2022 to freeze assets of Russia’s central bank. U.S. Treasury data shows China’s holdings of its debt fell to $618 billion in July, an 18-year low.
Domestic factors also appear to be influencing private investment in gold. China’s real estate market is in a multiyear slump, and the benchmark CSI 300 stock index was down approximately 8% for the year as of October. In contrast, the S&P 500 gained 13% over the same period. Returns on other domestic investments have also declined, with China’s one-year government bond yield at around 1.2%, compared to approximately 4.46% in the U.S.
“The opportunity cost of holding gold is also much lower in China than in many Western markets,” said Ole Hansen, head of commodity strategy at Saxo Bank.
The increased demand from China has occurred as global gold prices have retreated from earlier highs. After reaching a record above $5,500 per ounce in January, prices fell more than 8% in September to around $4,176. Some market observers suggest that Chinese purchasing has provided a level of price stability.
“Chinese buying has become an important source of structural support for gold prices,” said Ewa Manthey, a commodities strategist at ING Bank. She added that central banks are typically long-term holders and are less sensitive to price fluctuations than retail investors.
According to the World Gold Council, China held 2,387 tonnes of gold as of August, making it the world’s fifth-largest holder. The United States holds the largest reserve. Hansen noted that a renewed confidence in China’s property and stock markets or a change in central bank diversification strategies could affect demand for gold in the future.
