By 
China Gold Buying Accelerates as PBoC Adds 63 Tonnes in Q3
China's official gold purchases accelerated in the third quarter of 2026, with the People's Bank of China adding 63 tonnes, while investment demand through gold-backed ETFs strengthened. Physical demand remained softer as weak jewellery consumption weighed on the market.
Published October 19, 2026
Key Points
- PBoC: China's central bank added 23 tonnes of gold in September, taking third-quarter purchases to 63 tonnes.
- Gold ETFs: Chinese gold-backed ETF holdings rose by 11 tonnes in September to a record 304 tonnes.
- ETF Investment: Third-quarter Chinese gold ETF inflows totaled RMB27 billion.
- Physical Demand: Shanghai Gold Exchange withdrawals rose 48% month over month to 92 tonnes in September.
- Wholesale Demand: Q3 demand fell 21% year over year to 234 tonnes as jewellery consumption remained weak.
MONTREAL (Scrap Monster): China's official gold purchases accelerated during the third quarter of 2026, while investment demand through gold-backed exchange-traded funds strengthened, according to the latest China gold-market update from the World Gold Council.
The physical market produced a more mixed picture, with subdued jewellery consumption continuing to weigh on wholesale gold demand despite stronger activity ahead of China's early-October holiday period.
PBoC Gold Purchases Reach 63 Tonnes in Q3
The People's Bank of China (PBoC) added 23 tonnes of gold in September, its largest monthly purchase since October 2023.
The September addition lifted China's third-quarter official gold purchases to 63 tonnes, marking the strongest quarter of central-bank buying since the third quarter of 2023.
China's official gold holdings reached 2,410 tonnes by the end of September, according to World Gold Council data.
The September purchase also extended the PBoC's reported gold-buying streak to 23 consecutive months. Year-to-date purchases reached 103 tonnes.
September Gold Pullback Trims Quarterly Gain
Gold prices retreated during September as rising U.S. Treasury yields and a stronger dollar pressured bullion.
The London Bullion Market Association's afternoon gold price in U.S. dollars declined 8.5% during the month, while the Shanghai Benchmark Gold Price in Chinese yuan fell 5.5%.
Despite the September pullback, the domestic RMB gold price still finished the third quarter with a 3% gain.
The World Gold Council attributed the September weakness partly to higher U.S. Treasury yields and a stronger dollar, which increased pressure on international gold prices.
Chinese Gold ETF Holdings Reach Record 304 Tonnes
Chinese gold-backed ETFs attracted fresh investment for a third consecutive month in September.
ETF holdings increased by 11 tonnes during the month, taking total holdings to a record 304 tonnes.
Chinese gold ETFs attracted approximately RMB27 billion in net inflows during the third quarter, while total holdings increased by 27 tonnes over the period.
The World Gold Council said portfolio diversification demand, weaker local equity markets, declining government bond yields and continued central-bank gold purchases helped support ETF investment during the quarter.
Physical Gold Demand Improves in September
Shanghai Gold Exchange withdrawals rose sharply in September as seasonal purchasing picked up ahead of China's National Day holiday.
Banks, jewellers and other market participants withdrew 92 tonnes of gold from the Shanghai Gold Exchange during the month, an increase of 48% from August.
The improvement reflected seasonal inventory replenishment and renewed bullion buying following the decline in gold prices.
However, September withdrawals remained 22% below the year-earlier level, highlighting continued weakness in the broader physical market.
Jewellery Weakness Weighs on Q3 Demand
China's wholesale gold demand totaled 234 tonnes in the third quarter, down 21% year over year.
The quarterly total was also 44% below the ten-year average of 418 tonnes, with persistently weak jewellery consumption identified as the principal drag on demand.
Holiday-related purchasing offered some support to jewellery, gold bars and coins around the end of September and early October as lower prices encouraged buying ahead of the National Day holiday.
However, affordability pressures and weaker consumer confidence continue to present challenges for jewellery demand even as investment demand remains comparatively strong.
China Gold Market Shows Clear Investment-Physical Split
The third-quarter data point to a widening divide in China's gold market. Official-sector purchases and ETF investment remained strong, while traditional jewellery and wholesale demand continued to lag.
The PBoC's 63-tonne quarterly purchase and record ETF holdings underline sustained investment demand for gold, even as weaker jewellery consumption limits growth in the physical market.