China’s central bank has continued its long-running gold-buying spree, reflecting broader efforts to diversify its foreign reserves and shield itself from geopolitical risks. The People’s Bank of China (PBoC) purchased about 23 tonnes of gold in September 2026, its largest monthly addition in nearly three years. This marked the 23rd consecutive month of gold accumulation, bringing China’s official holdings to around 2,410 tonnes. Gold now accounts for 8.5% of China’s official foreign reserves, up from 5.5% at the end of 2024.
The push to accumulate gold aligns with China’s strategy to reduce reliance on US dollar-denominated assets, particularly US government debt. Experts note that Beijing’s focus on assets beyond foreign financial systems grew after Western nations froze roughly $300 billion in Russian central bank assets following Russia’s 2022 invasion of Ukraine. Gold’s appeal lies in its immunity to foreign sanctions, making it a safer reserve asset amid geopolitical tensions. Rising US federal debt, which has surpassed $40 trillion, has also fueled China’s diversification efforts.
Beyond central bank purchases, Chinese households are increasingly turning to gold as a hedge against domestic economic uncertainty. Demand for gold bars and coins surged 28.4% year-on-year in the first half of 2026. Weak performance in China’s property and stock markets has limited investment options, driving households toward safer assets like gold.
China’s gold accumulation is part of a global trend among central banks, particularly in emerging markets, to strengthen reserve resilience. While the US dollar remains the dominant reserve currency, analysts suggest that sustained gold purchases could gradually reduce demand for US Treasuries. Despite recent gains, China’s gold holdings still lag far behind those of the United States, which holds over 8,133 tonnes.