China's central bank added gold to its reserves for a 23rd straight month in September, lifting holdings to 77.47 million ounces from 76.73 million. The increase, about 23 tonnes, was larger than August's, even as gold prices fell during the month.
At a glance
- The People's Bank of China added about 0.74 million ounces in September, up from 0.65 million ounces in August.
- China's foreign exchange reserves fell to $3.400 trillion from $3.438 trillion, a bigger drop than economists expected.
- The dollar index rose 2.06% in September, which lowered the dollar value of China's other reserve assets.
Background
The People's Bank of China (PBOC) publishes its gold and foreign exchange reserve figures early each month. China holds the world's largest foreign exchange reserves and has been adding gold steadily since late 2024. Gold is measured in fine troy ounces; one million ounces is about 31 tonnes.
What happened
The People's Bank of China raised its gold reserves to 77.47 million fine troy ounces at the end of September, from 76.73 million ounces a month earlier, according to data released on Wednesday. That is about 23 tonnes and the 23rd consecutive month of buying.
The September increase of about 0.74 million ounces was larger than August's 0.65 million ounces, which was itself the biggest monthly addition in nearly three years.
Why it matters
China kept buying even as gold fell about 6.5% in September. The continued accumulation underscores China's efforts to diversify its reserves amid shifts in global currencies and financial markets. World Gold Council data released on Tuesday showed China was already the largest central bank buyer in August, with 20 tonnes.
At the same time, China's foreign exchange reserves, the world's largest, fell to $3.400 trillion from $3.438 trillion. That was a bigger drop than the $3.420 trillion economists polled by Reuters had expected. The dollar index rose 2.06% in September, which reduced the dollar value of reserves held in other currencies. The yuan strengthened 0.22% against the dollar over the month.
What it means
Steady buying from the world's largest holder of foreign exchange reserves gives gold a reliable source of demand, even when higher bond yields weigh on prices. Bundesbank President Joachim Nagel said this week the case for central banks to keep diversifying into gold remains significant.
For Indian buyers, Chinese official demand is part of the support under the international gold price that domestic rates follow, alongside the rupee and import duties.
Our read
Outlook: bullish. A larger monthly purchase from China supports gold demand. Near-term prices remain driven more by US yields and Fed expectations.
What to watch
- October PBOC reserve data in early November for a 24th month of buying.
- World Gold Council figures for September central bank purchases.
- Whether higher bond yields slow official gold buying.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-10-24.
Detailed analysis
Timeline
- 2026-09-07: PBOC reports its 22nd straight month of gold buying, the largest addition in nearly three years.
- 2026-10-07: PBOC reports gold reserves of 77.47 million ounces at the end of September.
Central Banks
China's central bank added about 23 tonnes of gold in September, more than in August.
Currency Impact
A 2.06% rise in the dollar index cut the dollar value of China's other reserves.
What could lift prices
- China is buying more gold each month, not less.
- Official buying continued even as gold fell in September.
What could weigh on prices
- Chinese purchases are small compared with global gold supply.
- High US bond yields continue to weigh on gold prices.
Country impact
| Country | Impact | Reason |
|---|---|---|
| China | High | Its central bank extended its gold buying to 23 months and raised the pace. |
| India | Low | Chinese official demand supports the international gold price Indian rates follow. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Bullion Trading | Positive | Steady official buying supports physical gold demand. |
Who gains, who loses
- Long-term gold holders: China's steady buying provides a base of demand.
- Dollar assets in China's reserves: China continues to shift part of its reserves toward gold.
Other ways this could play out
- If gold keeps falling, China may use the lower prices to buy more.
- If the PBOC slows its purchases, an important source of demand would weaken.
Price risks
- A pause in Chinese buying would remove steady support for gold.
- Further rises in US yields could outweigh official demand.
Historical comparison
- August 2026: China added 0.65 million ounces, its biggest monthly increase in nearly three years.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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