China’s central bank buys 21 tonnes of gold, its biggest month in three years

China’s central bank bought 21 tonnes of gold in September, its largest monthly purchase in three years and the biggest since September 2023, when reserves rose by 24 tonnes⁸. The People’s Bank of China lifted its holdings to 77.47 million fine troy ounces from 76.73 million at the end of August^9,12. That is an increase of 740,000 ounces¹¹, taking reserves to roughly 2,409.59 tonnes¹⁴.

The purchase extended the buying streak to a twenty-third consecutive month⁷. China Daily Asia reported it as the biggest monthly gold reserve increase in three years¹⁰. One account recorded holdings hitting a record high for the month¹¹. The same data release showed China’s foreign exchange reserves shrinking by $38.1 billion¹³, a larger fall than expected³. Kitco reported the purchase as announced by the central bank on Wednesday, and noted it was the largest monthly addition since the autumn of three years earlier⁸.

Why it matters to investors

Beijing is buying into weakness rather than strength. Gold slid more than 6 percent in September, and China bought more of it that month than in any month since 2023⁹. Bloomberg, via Yahoo Finance UK, reported that the central bank has stepped up purchases in recent months after prices fell⁵.

The pattern is not confined to China. The World Gold Council reported net central bank purchases of 39 metric tons in August, led by China with 20 metric tons⁴, bringing reported central-bank buying to roughly 170 tonnes so far this year⁶. FXStreet described the steady accumulation as underlining the role of gold in central bank reserve diversification¹. Analysts at ING said central bank demand has continued to support the gold market despite uncertainty over interest rates².

What to watch

The contrast inside a single data release is the signal: gold reserves rising while foreign exchange reserves fall^3,13. Read together they describe a reserve mix shifting at the margin rather than a one-off trade^7,13. The Standard reported the foreign exchange decline alongside the gold streak in the same dispatch³.

Three things to track. Whether the streak extends past the twenty-third month⁷. Whether official buying keeps absorbing price declines, which is what distinguishes this bid from investor demand^5,9. And whether the monthly World Gold Council totals hold near the pace that has produced roughly 170 tonnes of reported purchases so far this year^4,6.