China's gold imports reach US$158.8bn in January–August 2026
China imported more than 1,000 tonnes of gold in January–August 2026, while central bank purchases continued for a 23rd month in September.
- China's gold imports in the first eight months of 2026 reached a record US$158.8 billion, surpassing the total value imported during the entire previous year.
- The surge is driven by the central bank's efforts to reduce dependence on the U.S. dollar, with the People's Bank of China extending its gold-buying streak to 23 consecutive months.
- Increased household demand for gold as a safe-haven asset is another key factor, fueled by a downturn in the property market and poor returns from stocks and bonds.
China imported a record US$158.8 billion worth of gold in the first eight months of 2026, exceeding the previous full year’s total, customs data show. The surge reflects Beijing’s efforts to reduce its dependence on the dollar and growing household demand for safe-haven assets amid limited investment alternatives.
Chinese gold imports exceeded 1,000 tonnes between January and August 2026, compared with 886 tonnes worth US$96.5 billion during the whole of 2025.
China’s central bank extends gold buying to 23 months
The People’s Bank of China (PBOC) added about 23 tonnes of gold in September 2026, its largest monthly purchase in almost three years, according to China’s State Administration of Foreign Exchange. The addition marked a 23rd consecutive month of buying, extending the central bank’s longest purchasing streak since at least 2015.
China’s official gold reserves stood at 2,387 tonnes in August 2026, placing it fifth among countries, according to the World Gold Council. The total was less than one-third of US gold reserves.
Beijing reduces reliance on US reserve assets
Julius Baer Group analyst Carsten Menke views the PBOC’s gold buying as primarily politically motivated, reflecting the use of the US dollar as an instrument of pressure and Beijing’s desire to rely less on US Treasury securities as reserve assets.
Western governments froze Russian central bank assets following Russia’s invasion of Ukraine in 2022. The restrictions demonstrated the risks of holding reserves abroad during geopolitical disputes, while gold kept in domestic vaults remained insulated from such measures.
China’s holdings of US Treasury securities fell to an 18-year low of US$618 billion in July 2026, according to US Treasury Department data, as Beijing continued to diversify its foreign exchange reserves.
Menke also linked China’s increased gold buying to Beijing’s plans to develop a deeper and more liquid domestic gold market, requiring larger holdings of the metal.
Menke estimated that the PBOC bought about 190 tonnes of gold in the first eight months of 2026, including 110 tonnes that had not been officially reported.
Weak investment returns drive household gold demand
Chinese households and businesses have increasingly turned to gold to protect their wealth as the economy struggles and alternative investments offer limited appeal. Consumers have stepped up purchases of gold jewellery, bars and coins.
China’s property market, once the main store of household wealth, remains caught in a downturn lasting several years, reducing the appeal of a traditional investment choice for domestic savers.
China’s benchmark CSI 300 stock index had fallen about 8% in 2026, compared with a 13% rise in the US S&P 500 index over the same period.
Returns on Chinese bank deposits and bonds have also declined amid weak borrowing demand. China’s one-year government bond yield fell to around 1.2%, compared with approximately 4.46% in the United States.
Chinese demand supports the gold price outlook
Analysts expect demand from China to remain strong despite the country’s economic difficulties, helping gold resist pressure from high US bond yields. State Street Investment Management forecasts that gold could reach US$4,750–5,500 per troy ounce by the end of the first quarter of 2027.
Gold prices fell more than 8% in September 2026 to around US$4,176 an ounce, after reaching a record above US$5,500 in January. Chinese buying has helped cushion the market against a sharper decline.
Central bank purchases provide longer-term support for gold because reserve managers generally buy to hold the metal and are far less sensitive to price changes than retail investors.
High US bond yields nevertheless constrain demand for gold, which pays no interest and generally faces downward pressure when interest rates rise. The US Federal Reserve has signalled that another rate increase could take place in 2026.
Gold has remained above its summer 2026 levels despite a sharp rise in interest rate expectations and bond yields.
Chinese gold demand could weaken if confidence in the country’s property and stock markets recovers. A weaker yuan could also make gold more expensive for domestic buyers, while higher interest rates could make bank deposits more attractive.
