China's Gold Buying Spree Accelerates Amid Record Purchases

China's influence on global gold demand is expanding, driven by central-bank purchases, household investment, institutional participation, and new trading infrastructure. The People's Bank of China remains at the forefront of the country's gold strategy.

According to Jefferies analysts, reported gold reserves rose from approximately 1,950 tonnes in November 2022 to around 2,366 tonnes by July 2026. In 2023, China added about 225 tonnes, its largest annual increase on record. The country's buying accelerated again in the second quarter of 2026, with roughly 33 tonnes added, followed by about 20 tonnes in July, the strongest monthly purchase since October 2023.

Official figures may underestimate demand. Estimates suggest that official-sector purchases totaled around 161.6 tonnes since January 2024, compared to the central bank's reported 130.9 tonnes. This implies potentially unreported buying of roughly 30 tonnes.