Gold Reserves Rise as China Makes Its Biggest Buy in 3 Years
China's gold reserves reached a record 2,410 tonnes after the People's Bank of China purchased 23 tonnes in September 2026, marking its largest monthly accumulation in nearly three years and supporting global gold prices.
Based on data from MarketCapOf regarding China’s gold acquisitions, the People’s Bank of China purchased 23 tonnes of the precious metal in September 2026, marking its largest monthly accumulation in nearly three years and lifting total reserves to a record 2,410 tonnes. This acquisition extends a continuous 23-month buying streak by China. Meanwhile, gold’s share of global reserves has advanced to approximately 20%, up from 5.77% in 2007, with ongoing central bank acquisitions actively influencing the gold price forecast.
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China’s Gold Buying Spree Helps Hold Up Gold Prices
Data compiled by the State Administration of Foreign Exchange—highlighted in Pluang’s report on China’s record gold imports—indicates that China’s current purchasing streak is the longest recorded since at least 2015. Gold accounts for roughly 9% of China’s foreign exchange reserves, and Beijing has accumulated more than 103 tonnes throughout the year, placing it second globally behind Poland.
Statistics from The Market Ear demonstrate that gold’s proportion of global reserves hovered between 6% and 10% for over a decade before accelerating sharply after 2020, with China’s gold reserves serving as a consistent driver of that upward trend.
Why China Keeps Buying Gold
Julius Baer Group analyst Carsten Menke noted that Beijing’s primary motivation is political, driven by a desire to reduce its reliance on the US dollar and Treasury securities. Menke further estimated that an additional 110 tonnes purchased this year went unreported, suggesting China’s actual gold reserves may exceed official figures.
Beyond central bank activities, domestic retail buyers are also driving demand. Amid ongoing struggles in the local stock and property 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, observed:
“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 declined by over 8% in September to approximately $4,176 per ounce—retreating from an all-time high above $5,500 reached in January—continued Chinese acquisitions have prevented further downward movement.
Ewa Manthey, a commodities strategist at ING Bank, stated:
“Chinese buying has become an important source of structural support for gold prices.”
State Street Investment Management analyst 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 expected to persist, as 45% of 74 central banks surveyed by the World Gold Council intend to expand their holdings. Even with recent increases, China’s gold reserves remain under one-third of total US holdings.
Ghana Eyes BRICS As Gold Demand Grows
Ghana, a prominent West African gold producer, is also pursuing membership within the economic bloc. According to Africa Business Insider, 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 revealed this policy shift 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.”
Several factors could potentially moderate demand moving forward. Hansen noted that a revival in China’s equity and property markets, an appreciating yuan, or higher deposit rates might temper purchasing volumes. A broader trend reversal would require central banks to abandon reserve diversification strategies and geopolitical tensions to subside—outcomes he views as unlikely in the near term. Driven by expanding Chinese reserves, growing global reserve allocations, and ongoing central bank accumulation, the overall gold price forecast heading into 2027 remains favorable.
Frequently Asked Questions
Why is China increasing its gold reserves?
Analysts point to a strategic and political motivation to decrease reliance on the US dollar and Treasury securities, alongside strong retail demand from households seeking alternatives amidst domestic property and stock market struggles.
How much gold did China buy recently?
The People’s Bank of China added 23 tonnes of gold in September 2026, bringing its total reserves to a record 2,410 tonnes and marking its largest monthly purchase in nearly three years.
What is the broader outlook for gold prices?
Despite a September pullback, experts like Aakash Doshi forecast prices between $4,750 and $5,500 per troy ounce by early 2027, supported by persistent central bank purchases and strong structural demand from China.
