Gold Reserves Rise as China Makes Its Biggest Buy in 3 Years
The People's Bank of China purchased 23 tonnes of gold in September 2026, marking its largest monthly acquisition in nearly three years and pushing its total reserves to 2,410 tonnes amid ongoing central bank buying trends.
Based on a report by MarketCapOf regarding China’s gold acquisitions, the People’s Bank of China purchased 23 tonnes in September 2026, marking its largest monthly acquisition in nearly three years and pushing its total gold reserves to a record 2,410 tonnes. This acquisition extends China’s continuous streak of gold purchases to 23 months. Meanwhile, gold’s proportion of global reserves has increased to approximately 20% compared to 5.77% in 2007, with central bank activity continuing to influence the gold price forecast.
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China’s Gold Buying Spree Helps Hold Up Gold Prices
According to State Administration of Foreign Exchange figures cited in a Pluang report on China’s record gold imports, this purchasing streak is the longest observed since at least 2015. Gold reserves now account for roughly 9% of China’s foreign exchange reserves, and Beijing has accumulated over 103 tonnes throughout the year, placing it second only to Poland.
Figures from The Market Ear indicate that gold’s share of global reserves remained bound between 6% and 10% for more than a decade before accelerating after 2020, with China’s reserves contributing steadily to that upward trajectory.
Why China Keeps Buying Gold
Julius Baer Group analyst Carsten Menke stated that political motivations drive Beijing’s actions, as the nation seeks to reduce its reliance on the US dollar and Treasuries. Menke also calculated that an estimated 110 tonnes acquired this year went officially unreported, suggesting actual holdings may exceed official figures.
Beyond central bank activities, domestic households are also acquiring 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, noted:
“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
Despite gold falling more than 8% in September to approximately $4,176 an ounce following a record peak above $5,500 in January, purchases by China have prevented further declines.
ING Bank commodities strategist Ewa Manthey stated:
“Chinese buying has become an important source of structural support for gold prices.”
State Street Investment Management’s Aakash Doshi projects a gold price forecast ranging from $4,750 to $5,500 per troy ounce by the end of the first quarter of 2027. Furthermore, central bank acquisitions are expected to persist, given that 45% of 74 central banks surveyed by the World Gold Council intend to accumulate more gold. Even with these increases, China’s gold reserves remain under one-third of the total held by the United States.
Ghana Eyes BRICS As Gold Demand Grows
West African gold producer Ghana is also seeking membership in the bloc. According to Africa Business Insider, the nation intends to formally apply to join BRICS, aligning itself with countries like China, India, and Russia. This development coincides with China’s continuous record-breaking gold reserves. Foreign Affairs Minister Samuel Okudzeto Ablakwa disclosed the decision on October 6, sharing the following statement via a post 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 dampen demand. Hansen pointed out that a turnaround in China’s stock and property markets, an appreciation of the yuan, or higher deposit rates might weigh on acquisition trends. However, he noted that a substantial shift would require central banks to abandon their diversification goals and a general easing of geopolitical tensions, neither of which he anticipates in the near term. Bolstered by growing Chinese reserves, an increased share of global reserves, and sustained central bank acquisitions, the gold price forecast extending into 2027 remains positive.
