China buys 23 tonnes of gold in September, highest monthly purchase since 2023

China’s central bank ramped up its gold purchases in September, adding 23 tonnes to its reserves, the highest monthly acquisition since September 2023, as the country continued to increase its exposure to the precious metal amid a broader shift in central bank reserve management.

The latest purchase marks the 23rd consecutive month of gold buying by the People’s Bank of China (PBOC). It follows purchases of 20 tonnes each in July and August, indicating that China has maintained an accelerated pace of accumulation in recent months.

With September’s addition, China’s officially reported gold purchases for 2026 have reached 103 tonnes. Its total gold holdings have risen to a record 2,410 tonnes, according to the figures cited in the data shared by The Kobeissi Letter, which attributed the data to the World Gold Council.

The sustained buying comes as central banks continue to diversify their reserve portfolios and strengthen their holdings of gold, a traditional reserve asset that carries no direct sovereign credit risk.

China closes in on France and Italy

China is currently the world’s fifth-largest official gold holder, behind the United States, Germany, Italy and France, according to the figures cited in the report.

The gap between China and the European countries immediately above it has narrowed. Italy holds approximately 2,452 tonnes of gold, while France has around 2,437 tonnes. At 2,410 tonnes, China is just 27 tonnes behind France and 42 tonnes behind Italy.

If its accumulation continues at a similar pace, China could overtake France and Italy in the official gold holdings rankings. However, the timing will depend on future purchases and any changes in the reported holdings of the other central banks.

Such a shift would further underline China's growing gold reserves and its long-term effort to diversify its official reserve assets.

Buying continues despite market fluctuations

China’s latest purchase also points to continued demand for gold despite fluctuations in market prices. The Kobeissi Letter characterised the buying as an effort to purchase gold during price dips, although the figures alone do not establish the PBOC’s precise timing strategy or its motivations for individual transactions.

The monthly data show a significant acceleration in reported purchases since March 2026. China added five tonnes in March, followed by eight tonnes in April and 10 tonnes in May. Purchases then rose to 15 tonnes in June and 20 tonnes in both July and August, before reaching 23 tonnes in September.

The sustained accumulation suggests that China’s gold-buying programme remains firmly in place rather than representing a one-off increase in reserves.

For global gold markets, continued purchases by major central banks remain an important source of official-sector demand. China’s latest acquisition reinforces its position as a major participant in this trend, even as the scale and timing of future purchases remain uncertain.