China’s Central Bank Extends Its Gold Buying to a 22nd Month

China’s central bank increased its gold reserves for the 22nd consecutive month in August, adding 650,000 ounces in its largest single-month purchase since 2023^2,3. China’s State Administration of Foreign Exchange reported the figure on September 7, 2026¹⁰. The purchase takes total holdings to 76.73 million ounces⁷.

Accounts of the tonnage differ. One report put the August addition at 650,000 ounces, or 18.4 tons⁹; another described it as more than 22 tons⁸; a third headlined it as 20 tons, the biggest haul in nearly three years¹¹. The ounce figure is consistent across the reports^2,3,10, and the spread in the tonnage headlines runs from 18.4 tons to more than 22 tons for the same purchase^8,9,11.

Why it matters to investors

The buying continued through a sharp move in the price. International gold prices jumped about 10% during the month⁹, and the central bank continued to increase its purchases despite that surge⁶. Investing.com described the People’s Bank of China as ranking among the world’s largest official-sector buyers, and reported that the purchase extends its buying streak to 22 consecutive months⁴. GoldSilver framed the August figure as China breaking its own gold-buying record for a second time¹⁰. Demand that does not step back when prices rise is price-insensitive demand, which is what distinguishes reserve managers from speculative flows^4,6,9.

Reserve composition is the wider signal. China’s foreign exchange reserves topped $3.44 trillion in August⁶. Gold held near $4,400 as dollar weakness met concerns about Federal Reserve policy, with Chinese central bank demand named as one of the factors being monitored in the market⁵.

What to watch

Sell-side targets have moved up on the back of this demand. Gold will probably test US$5,000 an ounce by the end of 2026, as demand from central banks diversifying their foreign reserves remains strong, according to investment banks¹. RBC Capital Markets is the latest to join the bullish camp, forecasting US$4,929 by year-end and US$5,296 in 2027¹. Goldman Sachs and State Street Investment Management were aligned with that view¹.

The counterweight is US monetary policy. The same survey of forecasts framed the bullish case as countering fears of tightening after strong labour data and a hawkish tone from the Federal Reserve¹. For now the streak itself is the cleanest datapoint: 22 consecutive months of official Chinese buying^4,7,8, sustained through a month in which prices rose about 10%^6,9.