The People's Bank of China (PBC), the country's central bank, extended its buying streak of gold reserves for the 23rd consecutive month in September 2026, marking the longest official purchase by any bank in the world. This has brought China's official gold reserves to 77.47 million ounces, up from 76.73 million ounces in August, official data showed on Wednesday (October 7). By the end of July, China's gold reserves reached nearly 76.08 million troy ounces, valuing at around $306 billion. By the end of August, its estimated value rose to $350 billion. According to Cryptometer, the People's Bank of China (PBC) added 20 tonnes in July alone, lifting official holdings to a record 2,366 tonnes.<h3>Why is China buying more gold?</h3>China's central bank has maintained a sustained gold-buying streak in world history. It has been buying gold consistently for nearly two years. Multiple reasons have been cited for the bank's move, including geopolitical uncertainty, reserve diversification, evading sanctions and de-dollarisation. De-dollarisation and reserve diversification: China holds a huge pile of foreign exchange reserves historically weighted toward US dollar assets like Treasury bonds. Gold offers a way to reduce that concentration without relying on another country's currency or financial system. Protection against sanctions: After Russia's central bank reserves were frozen due to international pressure following Moscow's invasion of Ukraine in 2022, it has became wakeup call for countries like China. The move indicates that dollar- and euro-denominated reserves can be frozen by Western governments in a crisis, but gold held in domestic vaults cannot be sanctioned the same way, since it doesn't depend on a foreign issuer. Geopolitical risk management: A 2026 survey by the OMFIF (a central-bank research network) found that most reserve managers cited protection from geopolitical risk as a key reason for buying gold, and the large majority said they see the global monetary system becoming more "multipolar," i.e., less centred on the US dollar. The scale of buying: According to the People's Bank of China, official holdings reached roughly 2,366 tonnes by July 2026, after what was reported as the longest continuous buying streak in the central bank's history, 21 months in a row. However, analysts, including Goldman Sachs, believe China's actual purchases are significantly higher than the official figures suggest, since much of its buying happens through markets like London's over-the-counter gold market rather than being disclosed directly. Broader trend: China isn't alone. Central banks globally have been buying gold at near-record levels for several years, and some forecasters expect this to continue given ongoing geopolitical tensions, trade disputes, and a more fragmented global financial system.&nbsp;Also read: <a href="https://www.wionews.com/world/trump-administration-proposes-70-000-fee-for-international-students-to-work-in-us-1791446308714">Trump administration proposes $70,000 fee for international students to work in US</a><h3>How do India and China's central banks see gold reserves?</h3>Reacting to the ongoing development, Siddharth Maurya, Managing Director of Vibhavangal Anukulkara Pvt Ltd, said, "China’s central bank has been buying gold for 23 consecutive months, accumulating 740,000 ounces of the precious metal worth $3.1 billion in the latest round. Over that period, Beijing has added 4.67 million ounces—about $19.5 billion — and grown its gold reserves to roughly $323.5 billion in total. It is not a fleeting exercise in short-term trading. It is a deepening conviction in the virtues of hard assets as a hedge against devaluation and de-dollarisation." "Meanwhile, there is an equally compelling story unfolding around India, which has official gold reserves of 880 tonnes valued at near $115–120 billion, placing it among the world’s top ten. China holds far more. But India’s true gold strength lies with its households, which own an estimated 25,000 tonnes—worth over $4 trillion, a stockpile larger than the combined reserves of the world’s largest central banks," he added. "The RBI has also been withdrawing gold from overseas repositories, and focusing more closely on its domestic gold holdings. The India connection therefore goes far beyond a desire to emulate China’s monthly gold-buying binge, and is instead about recognising that India already possesses an immense and undervalued stock of gold bullion that, if leveraged through monetisation, gold-backed finance or sovereign wealth, could create powerful economic opportunities that harness its unique cultural attachment to gold, " Maurya said.&nbsp;In September, the US dollar index rose, and prices of major financial assets declined overall globally. This comes after being influenced by the global macroeconomic environment and the monetary policies of major developed and developing economies. It prompted the country's foreign exchange reserves to fall over the month after the combined effect of exchange rate translation and changes in asset prices. Therefore, China stepped in to focus more on diversifying its reserves by buying more gold to maintain the overall stability of its foreign exchange reserves.

China's central bank has maintained a sustained gold-buying streak in world history. It has been buying gold consistently for nearly two years. Multiple reasons have been cited for the bank's move, including geopolitical uncertainty, reserve diversification, sanctions and de-dollarisation.

The People's Bank of China (PBC), the country's central bank, extended its buying streak of gold reserves for the 23rd consecutive month in September 2026, marking the longest official purchase by any bank in the world. This has brought China's official gold reserves to 77.47 million ounces, up from 76.73 million ounces in August, official data showed on Wednesday (October 7). By the end of July, China's gold reserves reached nearly 76.08 million troy ounces, valuing at around $306 billion. By the end of August, its estimated value rose to $350 billion. According to Cryptometer, the People's Bank of China (PBC) added 20 tonnes in July alone, lifting official holdings to a record 2,366 tonnes. Why is China buying more gold? China's central bank has maintained a sustained gold-buying streak in world history. It has been buying gold consistently for nearly two years. Multiple reasons have been cited for the bank's move, including geopolitical uncertainty, reserve diversification, evading sanctions and de-dollarisation. De-dollarisation and reserve diversification: China holds a huge pile of foreign exchange reserves historically weighted toward US dollar assets like Treasury bonds. Gold offers a way to reduce that concentration without relying on another country's currency or financial system. Protection against sanctions: After Russia's central bank reserves were frozen due to international pressure following Moscow's invasion of Ukraine in 2022, it has became wakeup call for countries like China. The move indicates that dollar- and euro-denominated reserves can be frozen by Western governments in a crisis, but gold held in domestic vaults cannot be sanctioned the same way, since it doesn't depend on a foreign issuer. Geopolitical risk management: A 2026 survey by the OMFIF (a central-bank research network) found that most reserve managers cited protection from geopolitical risk as a key reason for buying gold, and the large majority said they see the global monetary system becoming more "multipolar," i.e., less centred on the US dollar. The scale of buying: According to the People's Bank of China, official holdings reached roughly 2,366 tonnes by July 2026, after what was reported as the longest continuous buying streak in the central bank's history, 21 months in a row. However, analysts, including Goldman Sachs, believe China's actual purchases are significantly higher than the official figures suggest, since much of its buying happens through markets like London's over-the-counter gold market rather than being disclosed directly. Broader trend: China isn't alone. Central banks globally have been buying gold at near-record levels for several years, and some forecasters expect this to continue given ongoing geopolitical tensions, trade disputes, and a more fragmented global financial system. Also read: Trump administration proposes $70,000 fee for international students to work in US How do India and China's central banks see gold reserves? Reacting to the ongoing development, Siddharth Maurya, Managing Director of Vibhavangal Anukulkara Pvt Ltd, said, "China’s central bank has been buying gold for 23 consecutive months, accumulating 740,000 ounces of the precious metal worth $3.1 billion in the latest round. Over that period, Beijing has added 4.67 million ounces—about $19.5 billion — and grown its gold reserves to roughly $323.5 billion in total. It is not a fleeting exercise in short-term trading. It is a deepening conviction in the virtues of hard assets as a hedge against devaluation and de-dollarisation." "Meanwhile, there is an equally compelling story unfolding around India, which has official gold reserves of 880 tonnes valued at near $115–120 billion, placing it among the world’s top ten. China holds far more. But India’s true gold strength lies with its households, which own an estimated 25,000 tonnes—worth over $4 trillion, a stockpile larger than the combined reserves of the world’s largest central banks," he added. "The RBI has also been withdrawing gold from overseas repositories, and focusing more closely on its domestic gold holdings. The India connection therefore goes far beyond a desire to emulate China’s monthly gold-buying binge, and is instead about recognising that India already possesses an immense and undervalued stock of gold bullion that, if leveraged through monetisation, gold-backed finance or sovereign wealth, could create powerful economic opportunities that harness its unique cultural attachment to gold, " Maurya said. In September, the US dollar index rose, and prices of major financial assets declined overall globally. This comes after being influenced by the global macroeconomic environment and the monetary policies of major developed and developing economies. It prompted the country's foreign exchange reserves to fall over the month after the combined effect of exchange rate translation and changes in asset prices. Therefore, China stepped in to focus more on diversifying its reserves by buying more gold to maintain the overall stability of its foreign exchange reserves.

China's central bank has maintained a sustained gold-buying streak in world history. It has been buying gold consistently for nearly two years. Multiple reasons have been cited for the bank's move, including geopolitical uncertainty, reserve diversification, sanctions and de-dollarisation.

New Cold War: Why is China buying more gold? Explained

China’s central bank continued to bolster its gold reserves in June, extending a buying streak that underscores Beijing’s strategy to reduce reliance on the US dollar and strengthen its financial resilience. According to Bloomberg, the People’s Bank of China (PBOC) added 70,000 troy ounces of gold to its official reserves last month. This marks the eighth consecutive monthly increase, bringing total purchases since November to about 1.1 million troy ounces, or roughly 34.2 metric tons.<h2>Building reserves as prices hover near record highs</h2>The sustained buying comes as global gold prices have traded near historic highs. Year to date, gold has risen more than 25 per cent, supported by robust central bank demand, safe-haven flows linked to geopolitical tensions in the Middle East, and uncertainty surrounding US trade and economic policy.&nbsp;While June saw gold prices stabilise after earlier gains, analysts suggest ongoing purchases by official institutions, including the PBOC are likely to provide a floor for prices in the months ahead, as per Bloomberg.<h2>Diversifying away from the dollar</h2>China’s appetite for gold reflects a long-running effort to diversify its foreign exchange reserves away from dollar-denominated assets. According to Bloomberg, the PBOC had paused gold buying for six months before resuming acquisitions in November, ending what had been an 18-month buying spree that started in 2024.&nbsp;This renewed push highlights Beijing’s concern over the sustainability of US fiscal policy and the perceived long-term weakening of the dollar.<h2>Part of a global central bank trend</h2>China is not alone in boosting gold holdings. Central banks worldwide have been buying bullion at elevated levels, viewing it as a hedge against currency volatility, inflation, and geopolitical risk.&nbsp;Bloomberg notes that these official-sector purchases have been a key driver of gold’s rally this year, even as other factors such as investor demand and safe-haven buying also play a role.<h2>Outlook remains firm despite price consolidation</h2>Though gold prices showed signs of levelling off in June, many analysts expect steady central bank demand, including from China to continue supporting the market.&nbsp;Persistent worries about the global economic outlook, tensions in the Middle East, and trade frictions driven by US President Donald Trump’s policy stance are all contributing to a cautious environment where gold remains an attractive reserve asset.&nbsp;(With inputs from the agencies) &nbsp;

The People’s Bank of China added 70,000 ounces of gold in June, part of a broader move by global central banks to reduce dollar reliance and safeguard against inflation, geopolitical shocks, and trade tensions.

China’s central bank continued to bolster its gold reserves in June, extending a buying streak that underscores Beijing’s strategy to reduce reliance on the US dollar and strengthen its financial resilience. According to Bloomberg, the People’s Bank of China (PBOC) added 70,000 troy ounces of gold to its official reserves last month. This marks the eighth consecutive monthly increase, bringing total purchases since November to about 1.1 million troy ounces, or roughly 34.2 metric tons. Building reserves as prices hover near record highs The sustained buying comes as global gold prices have traded near historic highs. Year to date, gold has risen more than 25 per cent, supported by robust central bank demand, safe-haven flows linked to geopolitical tensions in the Middle East, and uncertainty surrounding US trade and economic policy. While June saw gold prices stabilise after earlier gains, analysts suggest ongoing purchases by official institutions, including the PBOC are likely to provide a floor for prices in the months ahead, as per Bloomberg. Diversifying away from the dollar China’s appetite for gold reflects a long-running effort to diversify its foreign exchange reserves away from dollar-denominated assets. According to Bloomberg, the PBOC had paused gold buying for six months before resuming acquisitions in November, ending what had been an 18-month buying spree that started in 2024. This renewed push highlights Beijing’s concern over the sustainability of US fiscal policy and the perceived long-term weakening of the dollar. Part of a global central bank trend China is not alone in boosting gold holdings. Central banks worldwide have been buying bullion at elevated levels, viewing it as a hedge against currency volatility, inflation, and geopolitical risk. Bloomberg notes that these official-sector purchases have been a key driver of gold’s rally this year, even as other factors such as investor demand and safe-haven buying also play a role. Outlook remains firm despite price consolidation Though gold prices showed signs of levelling off in June, many analysts expect steady central bank demand, including from China to continue supporting the market. Persistent worries about the global economic outlook, tensions in the Middle East, and trade frictions driven by US President Donald Trump’s policy stance are all contributing to a cautious environment where gold remains an attractive reserve asset. (With inputs from the agencies)

China extended its gold buying streak in June, reinforcing its strategy to diversify reserves and hedge against dollar risks amid global uncertainty.

China’s central bank extends gold-buying spree for eighth straight month

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New Cold War: Why is China buying more gold? Explained

China’s central bank extends gold-buying spree for eighth straight month