China's Gold Demand Surges as Central Bank and Insurers Boost Reserves
China's influence on the global gold market is expanding rapidly as its central bank and other entities increase their demand for the precious metal. The People's Bank of China has been actively buying gold, with reported reserves rising from around 1,950 tonnes in November 2022 to about 2,366 tonnes by July 2026.
The central bank added approximately 225 tonnes of gold to its reserves in 2023, the largest annual increase on record. 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.
However, official figures may understate demand. Estimates based on physical consumption, customs data, investment flows, and exports from major refining hubs indicate that official-sector purchases totaled 161.6 tonnes since January 2024, compared with 130.9 tonnes reported by the central bank. This implies potentially unreported buying of around 30 tonnes.
Demand is also spreading beyond the central bank as Chinese regulators last year allowed 10 insurance companies to invest in gold, with exposure capped at 1% of assets. A wider rollout could establish a recurring institutional source of demand.