China's Central Bank Continues Gold Purchases to Strengthen Reserves

The People's Bank of China continues its uninterrupted gold purchases in order to break the dominance of the dollar in the global financial system and diversify its reserves. With the tons of gold added to its reserves in September, the country's total stock reached record levels.

Purchasing Streak Continues

In line with its reserve diversification strategy, the People's Bank of China continues to consistently grow its gold stocks, and the uninterrupted purchasing streak has reached 23 months.

Adding 740,000 ounces of gold to its reserves in September, the bank broke the highest monthly purchase record seen since September 2023, bringing its reserves in tonnage terms to over 2,387 tons.

Strategic Steps Against the Dollar

The primary motivation behind Beijing's massive purchases stands out as minimizing dependence on the US dollar in the global system.

Having reduced its holdings in US Treasury bonds to $618 billion in July, the administration aims to expand the buying and selling of gold through the yuan by growing its physical gold infrastructure.

Citizens' Shift Toward Gold

The long-standing stagnation in the country's economy and the crisis in the real estate sector have made physical gold an attractive investment option for the public.

According to customs data, China, which spent hundreds of billions of dollars and imported more than a thousand tons of gold in the first eight months of 2026, surpassed the total figures of the previous year.

Impacts on the Global Market

This massive physical demand from China acts as a strong barrier against deep drops in spot gold, curbing the decline in prices.

Market experts emphasize that as long as geopolitical risks persist, this intense gold demand will maintain its medium- and long-term upward trend.