China's central bank has purchased gold for 23 consecutive months, extending the longest streak since at least 2015, while the country imported a record amount of the metal in the first eight months of 2026. The People's Bank of China added about 23 tonnes in September, its largest monthly acquisition in nearly three years, according to State Administration of Foreign Exchange data.
Customs data show that Chinese households and companies spent a record $158.8 billion importing more than 1,000 tonnes of gold from January through August 2026. This figure surpasses the $96.5 billion and 886 tonnes imported in all of 2025. Aakash Doshi, head of gold strategy at State Street Investment Management, noted that consumer gold imports hit a record during this period, with surging onshore premiums indicating stronger winter seasonal demand.
This accumulation occurs as gold prices have pulled back. The metal fell more than 8% in September to approximately $4,176 per ounce, after reaching a record above $5,500 in January. Doshi forecasts prices will rise to between $4,750 and $5,500 per troy ounce by the end of the first quarter of 2027, supported by robust demand.
Carsten Menke, an analyst at Julius Baer Group, identifies the primary motive for the central bank's purchases as political. He points to the weaponization of the U.S. dollar and Beijing's desire to reduce dependence on U.S. Treasuries as a reserve asset. This shift follows Western governments freezing Russia's central bank assets after its 2022 invasion of Ukraine, an event that highlighted the vulnerability of foreign-held reserves during geopolitical friction. In response, China has reduced its Treasury holdings to an 18-year low of $618 billion as of July, according to U.S. Treasury data.
Domestic demand is further driven by limited alternative investments for Chinese households. With the real estate market in a multiyear slump and the CSI 300 index down about 8% this year, consumers are turning to gold jewelry, bars, and coins as a safe haven. The S&P 500, by contrast, has gained 13%. Additionally, returns on bank deposits and bonds have declined due to tepid borrowing demand; China's one-year government bond yield stands at approximately 1.2%, compared to about 4.46% in the U.S.
Ole Hansen, head of commodity strategy at Saxo Bank, stated that the opportunity cost of holding gold is significantly lower in China than in many Western markets. Menke added that Beijing is building a deeper domestic gold market to replenish inventories. He estimated the central bank bought around 190 tonnes by the end of August, including 110 tonnes that were unreported.
Ewa Manthey, commodities strategist at ING Bank, described Chinese buying as a crucial source of structural support for gold prices, noting that central banks are less sensitive to price fluctuations than retail investors. Despite rising bond yields and interest rate expectations, which typically pressure gold prices, the metal has remained above summer levels. The Federal Reserve has indicated another interest rate hike for 2026.
As of August, China held 2,387 tonnes of gold according to the World Gold Council, making it the world's fifth-largest holder but less than one-third of U.S. holdings. Hansen noted that renewed confidence in China's property and equity markets, a weaker yuan, or higher interest rates could blunt demand. He added that a larger shift would require central banks to lose interest in diversifying reserves or for geopolitical tensions to ease, neither of which appears imminent.