The People's Bank of China (PBoC) added 20.2 metric tonnes of gold to its reserves in August, the State Administration of Foreign Exchange (SAFE) announced on September 8. The purchase is the largest single-month addition since October 2023 and extends China's uninterrupted gold-buying streak to 22 consecutive months.
Total official holdings now stand at approximately 2,387 tonnes, equivalent to 76.73 million troy ounces at the end of August. The reserve valuation jumped from $306.35 billion at the end of July to $350.08 billion at the end of August, an increase of roughly $43.7 billion in one month — reflecting both the new purchases and a gain in the market price of gold over the period.
Acceleration since May
The August figure continues an acceleration that began in May, when the PBoC returned to double-digit monthly purchases after a quieter first quarter. According to Wind Info data cited by China Daily, the August increment of 650,000 troy ounces topped July's 640,000 ounces and June's 480,000 ounces. It falls just short of the 740,000 ounces added in October 2023, the previous high-water mark.
In cumulative terms, China has purchased roughly 80 tonnes of gold in the first eight months of 2026, on pace to exceed the approximately 44 tonnes added in the whole of 2025. The World Gold Council's (WGC) latest report noted that the PBoC's "activity has picked up pace in recent months, with double-digit monthly purchases of gold since May 2026," placing China among the leading sovereign buyers alongside Poland, which has purchased 90 tonnes year-to-date.
Why it matters — and what it does not prove
The buying spree coincides with a pullback in gold prices that began earlier in 2026, suggesting the PBoC is taking advantage of lower entry points to diversify away from dollar-denominated reserves. China's total foreign exchange reserves stood at $3.4383 trillion at the end of August, up $19.5 billion (0.57 percent) from July, according to SAFE. Gold now accounts for a growing but still modest share of that stockpile.
However, the data does not reveal the PBoC's strategic target for gold as a percentage of total reserves — a figure Beijing has never disclosed. China remains the sixth-largest official gold holder globally, well behind the United States (over 8,100 tonnes) and several European central banks. The buying pace could slow or reverse at any time, as it did during parts of 2024 when monthly additions dropped below 10 tonnes.
The acceleration also carries broader implications for global gold demand. Central banks worldwide purchased approximately 130 tonnes of gold through the first seven months of 2026, compared with roughly 160 tonnes in the same period of 2025, according to the WGC. China's contribution now represents a significant portion of that total, and any sustained increase would tighten physical supply in an already tight market.
Sources
- [SAFE announcement via Kitco News — "China's central bank buys 20.2 tonnes of gold in August, largest purchase since 2023"](kitco.com)
- [China Daily — "China posts biggest monthly gold reserve increase in nearly three years"](govt.chinadaily.com.cn)
