China Adds 23 Tonnes to Gold Reserves
September's purchase was China's largest since October 2023, lifting quarterly buying to 63 tonnes while bullion still faced rate pressure.
by Corinne Ashdown2 min read
The People's Bank of China added 23 tonnes of gold in September, its largest monthly purchase since October 2023, the World Gold Council's October 15 report says. That took its third-quarter buying to 63 tonnes.
That updates China Leads August Central Bank Gold Buying, when the Council's October 6 statistics put China's monthly addition at 20 tonnes. The larger September purchase extends China's accumulation into the end of the quarter. For your bullion position, repeated additions mean another month of demand for physical reserves. We would keep that support in view when weighing the risk of further selling elsewhere. Today's China update covers one buyer; it does not give us a September total for central banks worldwide.
China's private investors supplied another source of demand. The October 15 report says Chinese gold ETF holdings rose for a third consecutive month in September, reaching a month-end record. It also reports continued ETF buying in early October. The Council links quarterly ETF demand to portfolio diversification amid weaker local equities and lower domestic government bond yields. That gives us evidence of investment buying alongside official purchases. Jewellery demand remained weak across the quarter, however, so the report supports a stronger investment case more clearly than a recovery across every Chinese gold buyer.
For listed bullion exposure, State Street says SPDR Gold Shares, ticker GLD, aims to reflect the gold bullion price after expenses. Continued official buying can support that exposure if it helps sustain bullion prices. You still bear the risk of a lower gold price, and expenses reduce the return. State Street also warns that shares can trade above or below net asset value. If you buy at a premium, the share price carries a cost beyond the value of the fund's underlying assets. Buying the fund therefore leaves you exposed to the whole gold market, including the forces that outweighed reserve accumulation during September.
Does that give your bullion position a floor? The Council's return model attributes September's gold price decline to rising US Treasury yields and a stronger dollar. China bought during that decline, showing why reserve accumulation can coexist with weaker prices. The Fed's next meeting is October 27 and 28, so rate policy remains a dated test alongside the demand figures. We would give China's larger purchase weight in our gold assessment while retaining room for yields and the dollar to move against us.
By November 6, we will check for the Council's broader September reserve update and whether other central banks reinforced China's buying.
Seek the truth and be prepared,
Equedia News
Sources
- World Gold Council, China gold market update: Q3 ends with strong official gold buying, October 15, 2026
- World Gold Council, Central Bank Gold Statistics: Central banks continue summer spree in August, October 6, 2026
- Equedia News, China Leads August Central Bank Gold Buying, October 6, 2026
- State Street, SPDR Gold Shares product page, accessed October 15, 2026
- Federal Reserve, FOMC meeting calendar, reviewed October 15, 2026
Disclaimer: This letter is for informational and educational purposes only and does not constitute investment advice. Past predictions and performance are not indicative of future results. We own gold and gold stocks. Please see our full terms of use and disclaimer at equedia.com.
