China Imports Record Volume of Gold in 2026 as Central Bank Extends Buying to a 23rd Consecutive Month

An Unbroken Buying Streak

According to CNBC, the Chinese central bank has bought gold for 23 consecutive months, even as the country imports more precious metal than ever. The People's Bank of China added about 23 tonnes in September, its largest monthly purchase in almost three years, according to State Administration of Foreign Exchange data cited by the outlet. This streak is the longest observed since at least 2015.

Based on customs figures reported by CNBC, China spent a record $158.8 billion over the first eight months of 2026, for more than 1,000 tonnes imported. This total exceeds the $96.5 billion and 886 tonnes imported over the full year 2025.

Aakash Doshi of State Street Investment Management says gold imports by Chinese consumers reached a record over this period. In his view, sharply higher premiums on domestic prices signal stronger seasonal winter demand.

A Market Still Below Its Peak

These purchases come as gold prices have retreated. According to CNBC, they lost more than 8% in September, to about $4,176 an ounce, after a record above $5,500 in January. According to Yahoo Finance, gold was trading at $4,214.40 an ounce on October 12, 2026 at 7:58 a.m. (Paris time), down 0.05% on the session.

Aakash Doshi forecasts a price between $4,750 and $5,500 an ounce by the end of the first quarter of 2027, supported by solid demand. This is his estimate, as reported by CNBC.

Political and Economic Motives

For Carsten Menke, analyst at Julius Baer, the central bank's main motive is political. He cites the "weaponization of the dollar" and the desire to rely less on U.S. Treasury bonds as a reserve asset. CNBC recalls that Western countries froze the assets of the Russian central bank after the invasion of Ukraine in 2022, illustrating the restriction risk facing reserves held abroad, whereas gold kept in its own vaults remains out of reach.

Still according to CNBC, China has reduced its holdings of U.S. Treasuries, which fell to $618 billion in July, an 18-year low according to U.S. Treasury data, as part of a diversification of its foreign exchange reserves.

Carsten Menke adds that Beijing's plan to develop a deeper domestic gold market is prompting the central bank to rebuild its stocks. He estimates it bought about 190 tonnes this year through the end of August, including 110 tonnes that were not reported.

Households Facing Few Alternatives

Demand is also fueled by gold's reputation as a safe haven. CNBC says consumers, worried about the fragility of the economy, are buying jewelry, bars and coins. Domestic investors have few options: real estate, long the main store of household wealth, has been in a multiyear slump. The CSI 300 index is down about 8% this year, while the S&P 500 is up 13%. Returns on bank deposits and bonds have declined: the one-year Chinese government bond yield has fallen to around 1.2%, versus about 4.46% in the United States.

Ole Hansen of Saxo Bank notes that the opportunity cost of holding gold is considerably lower in China than in many Western markets.

Structural Support for Prices

CNBC explains that Chinese demand has helped gold resist pressures that could have caused a steeper decline, with high U.S. yields weighing on this metal that pays no interest. The price of gold generally falls when rates rise. Ewa Manthey of ING believes Chinese purchases have become a significant source of structural support, as central banks buy over the long term and react far less to prices than individual investors do.

According to CNBC, prices are holding above their summer levels, despite a sharper rise in rate expectations and bond yields. The outlet notes that the Federal Reserve has signaled a further rate hike in 2026.

What Could Change the Picture

According to the World Gold Council, cited by CNBC, China, the world's fifth-largest gold holder, owned 2,387 tonnes in August, less than a third of U.S. reserves.

Ole Hansen identifies several factors that could weaken demand: a return of confidence in Chinese real estate and stocks, a weaker yuan that would make gold more expensive on the domestic market, or higher rates making deposits more attractive. A bigger shift would occur if central banks lost interest in diversifying their reserves and if geopolitical tensions eased. He considers neither scenario appears imminent.

Analysis. Based on the details reported by CNBC, Chinese demand combines an official component, tied to reserve management, and a private component, tied to the lack of alternative investments. The analysts cited agree on its supportive role, without ruling out factors that could weaken it.