China’s central bank buys 21 tonnes of gold in September, largest monthly purchase in 3 years - Kitco

How much gold did China’s central bank add in September, and how long had it been buying gold consecutively?

China’s central bank added 21 tonnes of gold in September. Its official reserves reached 2,196 tonnes by the end of the month. The purchase was notable because it was the largest monthly increase since September 2023, when reserves rose by 24 tonnes.

The buying also extended a long-running streak. The People’s Bank of China had purchased gold for 23 consecutive months. September’s addition exceeded the 18.5 tonnes bought in August and the 18 tonnes purchased in July.

This shows that China remained an active official-sector buyer even as gold prices declined. The World Gold Council reported that China had already added 80 tonnes during 2026 through August. September’s purchase therefore reinforced China’s position among the year’s leading central-bank gold buyers.

What are official gold reserves, and why does a central bank hold them?

Official gold reserves are gold assets owned and reported by a country’s central bank. They form part of a nation’s reserve holdings alongside foreign currencies and other assets. The article does not give a formal definition, but this is the standard meaning used in central-bank reporting.

Central banks generally hold gold to diversify their reserves and maintain an asset that is not another country’s currency or debt. Gold can also support confidence in a country’s financial position during periods of economic or geopolitical uncertainty. It is held as a reserve, not primarily for everyday spending.

China’s reported holdings rose to 2,196 tonnes after 23 straight months of purchases. The sustained buying shows gold remains important in the People’s Bank of China’s reserve management. The article links this activity with broader official-sector accumulation in 2026.

How large are China’s gold reserves now, and how does that compare with its total foreign-exchange reserves?

China’s official gold reserves stood at 2,196 tonnes at the end of September. Its foreign-exchange reserves stood at $3.4 trillion. Gold is reported by weight, while foreign-exchange reserves are reported by monetary value, so the two figures describe different parts of China’s reserve position.

The gold total followed a 21-tonne monthly increase and 23 consecutive months of buying. The foreign-exchange total fell by $38.1 billion, or 1.11%, from August. SAFE attributed that decline to currency translation and changes in asset prices during the month.

The figures show that China’s reserve portfolio includes both gold and foreign-exchange assets. The article does not provide gold’s dollar value or its percentage of total reserves. It does show continued gold accumulation alongside a September decline in foreign-exchange reserves.

Why might China increase its gold purchases when gold prices decline?

China’s purchases increased as bullion prices declined. The article directly links the People’s Bank of China’s stronger buying with gold’s price pullback earlier in the year. A lower price can make each purchase less expensive and may allow a reserve manager to acquire more tonnes within a chosen budget.

The clearest example came in September. China bought 21 tonnes, compared with 18.5 tonnes in August and 18 tonnes in July. That monthly increase was the largest since September 2023, when reserves rose by 24 tonnes.

The timing suggests China continued its accumulation program while prices were weaker. However, the article does not state China’s exact buying budget or say that price alone caused the decision. It also identifies broader uncertainty as a possible influence on central-bank buying, while noting that more analysis is needed.

What could China’s sustained gold buying do to global gold demand and prices?

When a large central bank keeps adding gold, it contributes steady demand to the global market. If supply does not rise equally, that extra demand could support gold prices or reduce downward pressure. China’s purchases therefore matter beyond its own reserves because official-sector buying is part of worldwide demand.

China added 21 tonnes in September after buying 18.5 tonnes in August and 18 tonnes in July. The World Gold Council reported 39 tonnes of net central-bank buying globally in August, with China taking the lead. China had reported 80 tonnes of purchases through August 2026.

The potential effect is not certain. The article does not measure how China’s buying changed prices or global demand. It does show a 23-month purchasing streak and continued activity from China, Poland, and other central banks, suggesting official accumulation remained an important market force.

Why are China and Poland among the leading central-bank buyers of gold in 2026?

China and Poland are among the leading central-bank buyers because their purchases have been large and consistent. The World Gold Council described their activity as part of multi-year accumulation programs. China had also continued buying for 22 consecutive months through August, before extending the streak to 23 months in September.

Poland topped year-to-date purchases with 98 tonnes in 2026 through August. China ranked second with 80 tonnes. Poland held 648 tonnes and was approaching its stated 700-tonne target, while China’s official reserves reached 2,196 tonnes after its September purchase.

The article says heightened economic or geopolitical uncertainty may influence central-bank buying, but it also says further analysis is needed. Therefore, the clearest documented reason is sustained accumulation. China and Poland’s repeated purchases distinguish them from less consistent or smaller official-sector buyers.

How do central banks use foreign-exchange reserves to support a country’s currency, international payments, and financial stability?

Foreign-exchange reserves are assets a central bank can use for international payments and reserve management. In general, a central bank may use them to help meet obligations in foreign currencies, support orderly currency conditions, and strengthen confidence in the financial system. These functions make reserves important during market stress.

For example, a central bank can draw on foreign-currency assets when a country needs to make external payments or when pressure on its currency becomes severe. It can also hold different assets to spread risk. The article reports that China’s foreign-exchange reserves fell by $38.1 billion in September as the dollar rose and major global financial-asset prices generally declined.

China still held $3.4 trillion in foreign-exchange reserves at month-end. SAFE said the economy remained broadly stable and that new growth drivers were strengthening. The article therefore presents reserves as a major stability buffer, even when market movements change their reported value.

Key Facts:

📌 China added 21 tonnes of gold in September.

📌 The purchase extended China’s buying streak to 23 months.

📌 China’s September increase was its largest since September 2023.

📌 Official gold reserves are central-bank gold holdings.

📌 Central banks generally hold gold to diversify reserve assets.

📌 China reported 2,196 tonnes of gold reserves at September’s end.

📌 China held 2,196 tonnes of gold at September’s end.