China Surpasses Records with Largest Ever Annual Gold Purchase
China's influence on the global gold market has grown significantly in recent years. According to Jefferies analysts, central-bank purchases, household investment, institutional participation, and new trading infrastructure have all contributed to increased demand for gold.
The People's Bank of China is at the forefront of China's gold strategy. Its reported reserves rose from around 1,950 tonnes in November 2022 to approximately 2,366 tonnes by July 2026. In 2023, China added about 225 tonnes, its largest annual increase on record.
Official figures may underestimate demand, with estimates suggesting that the central bank's actual purchases totaled around 161.6 tonnes since January 2024, compared to the reported 130.9 tonnes. This implies unreported buying of approximately 30 tonnes.