China has demonstrated an uncanny ability to trade gold in recent years with its 2026 gold buying telling a consistent story: small purchases when prices are high, aggressive accumulation when prices dip. The PBOC has been a price-sensitive but relentless buyer, and the acceleration in 2H26, as gold retreated from $4,000+, looks to have created a floor for the precious metal – their total holdings are now approaching 80 million ounces as of end-October.
- China’s PBOC is buying the dip, with October’s 25.8 tonnes the largest monthly purchase of 2026, despite gold falling nearly 7%.
- Chinese household demand is also increasing with Shanghai Gold Exchange trading volumes surging to their highest since April, while gold imports had already exceeded 1,000 tonnes by August, surpassing the entire 2025 total.
The buying reflects a broader central-bank trend: Global central banks purchased a net 321 tonnes in Q3 2026, the fastest quarterly pace since the end of 2024, taking year-to-date purchases to 675 tonnes. Reserve diversification remains the main driver, with China’s sustained accumulation reflecting an ongoing effort to reduce reliance on US dollar assets, reinforced by geopolitical tensions and uncertainty around the global monetary and trading system.
- The main reason gold has soared since COVID remains a driving force.
