(Kitco News) – China ramped up its gold purchases in September as bullion prices declined, recording the largest monthly increase in its official reserves in three years, the People’s Bank of China announced on Wednesday.
The central bank increased its gold reserves by 21 tonnes last month to 2,196 tonnes as of the end of September, marking the 23rd consecutive month of purchases, according to the PBoC.
The massive purchase was the largest since September 2023, when reserves rose by 24 tonnes, according to Chinese market tracker Wind Info. It also exceeded the previous months’ purchases of 18.5 tonnes in August and 18 tonnes in July.
China's foreign exchange reserves stood at $3.4 trillion at the end of September, down $38.1 billion, or 1.11%, from a month earlier, according to State Administration of Foreign Exchange data (SAFE).
SAFE attributed the decline to the combined effects of currency translation and changes in asset prices, as the U.S. dollar index rose and prices of major global financial assets generally fell during the month. They added that China's economy remained broadly stable, with new growth drivers gaining strength, supporting the overall stability of foreign exchange reserves.
The PBoC has ramped up its gold purchases significantly since the yellow metal’s price pulled back earlier this year. In the latest central bank gold purchase update from the World Gold Council (WGC), Marissa Salim, Senior Research Lead, APAC noted that the Chinese and Polish central banks continue to lead all sovereign buyers in 2026.
“Global central banks remain on pace with gold accumulation this August, with reported net buying totalling 39t,” Salim wrote. “Large, consistent buyers of gold in 2026 showed continued activity in the month, with China taking the lead, followed by Uzbekistan and Poland.”
Salim said central banks have reported total purchases of 170 tonnes through August 2026.
“Putting August’s total in broader context, analysis of reported central-bank gold purchases between 2016 and 2025 suggest modest seasonal variation, although differences across years remain substantial,” she noted. “Heightened economic or geopolitical uncertainty may play a role, but further analysis is needed to identify any strong and persistent underlying drivers.”
And the composition of banks that were buying in August was as significant as the impressive total tonnage, Salim said, as “demand was again led by familiar participants pursuing multi-year accumulation programmes.”
“Poland still tops the scoreboard when it comes to y-t-d gold purchases, buying 98t so far this year but we do see China catching up,” she wrote, noting that Poland now has 648 tonnes of gold in its reserves, bringing its 700-tonne target within reach in the coming months.
“In its 22nd consecutive month of buying, the People’s Bank of China added 20t to its gold reserves in August,” Salim said. “China has reported adding 80t to its gold reserves y-t-d, second only to Poland.”
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