EL7.AI
CommoditiesMedium•23 October 2026•
5 min read

China Adds 23 Tonnes to Gold Reserves as Global Net Buying Reaches 39 Tonnes in August

Key Facts

1Reported central-bank net purchases totaled 39 tonnes in August, and 170 tonnes from the start of 2026 through August.
2The People’s Bank of China added 23 tonnes in September, lifting its holdings to 2,410 tonnes, or 8.5% of total reserves.
3Central banks and other official institutions recorded net purchases of 288.9 tonnes in the second quarter, up 62% year on year from 177.9 tonnes.
489% of reserve managers expected global holdings to rise over the following 12 months, and 45% expected their own institutions’ holdings to increase.

Central banks’ reported net gold purchases totaled 39 tonnes in August 2026, and reported purchases totaled 170 tonnes from the start of the year through August, according to the World Gold Council. China was the largest reported buyer during the month, followed by Uzbekistan and Poland, the council said. In September, the People’s Bank of China added 23 tonnes to its reserves, its largest monthly addition since October 2023. The addition lifted its official holdings to 2,410 tonnes, equivalent to 8.5% of the country’s total reserves. The council said, "The People’s Bank of China reported a purchase of 23 tonnes of gold in September," extending the increase in China’s official holdings.

China’s reported holdings rose for 23 consecutive months through September, according to the World Gold Council. The People’s Bank of China purchased 63 tonnes in the third quarter and 103 tonnes from the start of the year through the end of September. The bank had added 33 tonnes in the second quarter, its largest quarterly addition since it bought 44 tonnes in the fourth quarter of 2023. In the first half, China added 40 tonnes, while Poland led central banks’ net purchases with an addition of 82 tonnes. The comparison shows that the ranking of buyers varies by period: China led purchases in August, while Poland ranked first in the first half.

Central banks and other official institutions recorded net purchases of 288.9 tonnes in the second quarter of 2026, up 62% year on year from 177.9 tonnes in the same period of 2025, according to the World Gold Council. But net demand in the first half totaled 345 tonnes, the lowest for a first half since 2022, when it was 241 tonnes. The council partly attributed the lower net total to large sales in the first quarter by Turkey, Russia and Azerbaijan. In the second quarter, the National Bank of Poland added 51 tonnes, lifting its reserves to 632 tonnes at the end of June and bringing them closer to its stated target of 700 tonnes. Uzbekistan added 16 tonnes and Kazakhstan 15 tonnes during the same quarter.

Official purchases and sales varied across countries in the second quarter, according to the council. Turkey’s sales fell to 4 tonnes after it was the largest seller in the first quarter, while Russia cut its holdings by 22 tonnes, making it the largest seller in the second quarter. More broadly, the European Central Bank said central-bank purchases slowed to about 850 tonnes in 2025, after exceeding 1,000 tonnes a year in each year from 2022 to 2024. The bank partly attributed the slowdown to historically high prices and strong private demand. In the same year, gold-backed exchange-traded funds recorded record inflows of $89 billion and bought about 800 tonnes, according to the European Central Bank.

The World Gold Council linked the increase in central-bank purchases in the second quarter to the broader geopolitical backdrop, lower gold prices and a long-term desire to diversify reserves. In its 2026 survey, 89% of reserve managers expected global central-bank holdings to rise over the following 12 months, and 45% said they expected their own institutions’ holdings to increase. The European Central Bank also said geopolitical tensions continued to drive strong central-bank demand for gold. In the context of reserve diversification, the bank said the euro’s share remained at about 20% across measures of global currency use in 2025. These indicators place gold purchases within a broader discussion of reserve composition, without making reserve managers’ expectations certain purchases.

In China, the increase was not limited to central-bank purchases: gold ETF holdings rose by 11 tonnes in September to a monthly record of 304 tonnes, marking a third consecutive monthly increase, according to the World Gold Council. By contrast, Chinese wholesale gold demand totaled 234 tonnes in the third quarter, down 21% year on year and 44% below the 10-year average of 418 tonnes. The gold benchmark price also fell 8.5% in dollar terms and 5.5% in yuan terms during September, according to the council. It said rising U.S. Treasury yields, Federal Reserve tightening and a stronger dollar weighed on gold that month. The metal then stabilized in early October, and the international price remained above $4,100 an ounce on October 12.

EL7 data showed a subsequent decline in GCUSD contract closes, from 4,181.1 on October 16 to 4,008.3 on October 23, 2026. This move followed a period of stability above $4,100 an ounce in early October on October 12, according to the World Gold Council. The council said geopolitical tensions and their impact on energy prices, together with investors’ inflation expectations and the path of U.S. interest rates, remain factors affecting near-term moves. The council had also identified central-bank purchases as one source of gold demand, while second-quarter data showed higher net buying than in the year-earlier comparison period. The next Gold Demand Trends report is due in early November, according to the council.