China Gold Reserves Hit 23-Month High in September Amid Metal's Price Drop

China's central bank bought 740,000 ounces of gold in September, the biggest monthly addition to its reserves since October 2023. The purchases occurred as the precious metal declined over 6%.

The People's Bank of China increased its gold hoard to 77.47 million fine troy ounces, up from 76.73 million in August. September was also the 23rd consecutive month of gold buying for the institution.

China's Gold Buying Accelerated Through 2026

The September intake is equivalent to roughly 23 tonnes. It matched October 2023, when reserves also grew by 740,000 ounces, according to State Administration of Foreign Exchange data.

Purchases have risen each month since March, when the PBOC added 160,000 ounces. September represented the seventh month in a row of bigger increases. During August, China acquired 650,000 ounces while gold gained almost 10%.

The World Gold Council estimated China's 2026 gold acquisitions at 80 tonnes through August. That placed it behind only Poland, which bought 98 tonnes. Adding September brings China's total for the year to about 103 tonnes.

Gold's Decline Reduced the Value of China's Holdings

Gold finished September at $4,157.14, a drop from $4,449.24 at the end of August, market figures indicate. That fall erased roughly 72% of August's $404 advance.

The September close also put gold 21.2% lower than its February close of $5,278.51, the highest monthly finish of 2026.

China's reserve valuation decreased as well. The value of its gold holdings slipped to $323.52 billion from $350.08 billion. The PBOC nonetheless held more gold than a month earlier.

SAFE also reported China's foreign exchange reserves at $3.4 trillion at the end of September. That number was down $38.1 billion from the end of August.

The decline has continued into October. At press time, gold was trading at $4,122.25, down 0.84% from its September close. It has fallen as low as $4,103.52 this month.

The PBOC's October figures will show whether purchases keep increasing while prices stay below August's level.