China’s Gold Reserves Surge as PBoC Adds 63 Tonnes in Third Quarter

Gold  |  2026-10-19 03:40:17   |   By Paul Ploumis

Gold prices retreated in September as rising US Treasury yields and a stronger dollar pressured bullion.

SEATTLE (Scrap Monster): China’s official gold purchases accelerated in the third quarter of the current year, while investment demand through gold-backed exchange-traded funds (ETFs) strengthened. However, subdued jewellery consumption continued to weigh on the country’s physical gold market.

The People’s Bank of China (PBoC) added 23 tonnes of gold in September, marking its largest monthly purchase since October 2023. The gold purchases during Q3 2026 totalled 63 tonnes.

Gold prices retreated in September as rising US Treasury yields and a stronger dollar pressured bullion. The London Bullion Market Association’s afternoon gold price in US dollars fell 8.5%, while Shanghai’s benchmark price in Chinese yuan declined 5.5%. Despite this, the domestic gold price recorded a 3% quarterly gain.

Chinese gold ETFs attracted fresh investment for the third consecutive month in September, adding 11 tonnes to reach a record 304 tonnes in total holdings. Third-quarter inflows amounted to RMB27 billion. Meanwhile, Shanghai Gold Exchange withdrawals rose 48% month over month to 92 tonnes in September. Third-quarter wholesale gold demand fell 21% year over year to 234 tonnes.

In the meantime, holiday-related buying provided some support for jewellery, bars and coins in early October.

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