China Gold Reserves Surge as PBoC Adds 63 Tonnes in Q3
Gold | 2026-10-19 06:43:30
Gold prices retreated in September as rising US Treasury yields and a stronger dollar pressured bullion.
By Paul Ploumis
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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POLL
Which factor provided the strongest support for China's gold investment demand in Q3 2026?
Frequently Asked Questions
- How much gold did China's central bank purchase in Q3 2026?
The People's Bank of China purchased a total of 63 tonnes of gold during the third quarter. Its September acquisition of 23 tonnes was the largest monthly purchase since October 2023, demonstrating continued gold accumulation by the country's monetary authorities.
- How did Chinese gold-backed ETFs perform in September?
Chinese gold-backed ETFs attracted investment for the third consecutive month, adding 11 tonnes in September. Their total holdings reached a record 304 tonnes, while third-quarter investment inflows amounted to RMB 27 billion, indicating strong investor demand despite lower international gold prices in September.
- Why did China's wholesale gold demand decline during the third quarter?
China's wholesale gold demand fell 21% year over year to 234 tonnes, primarily reflecting subdued jewellery consumption. Although investment demand remained strong, weaker physical buying limited overall market demand. Shanghai Gold Exchange withdrawals rose 48% month over month to 92 tonnes in September.