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China sharply increased its gold purchases in September as bullion prices declined, delivering the largest monthly expansion of its official holdings in three years. The People’s Bank of China announced the increase on Wednesday.

The central bank added 21 tonnes of gold during the month, lifting its reserves to 2,196 tonnes at the end of September. The purchase extended the PBoC’s buying streak to 23 consecutive months.

September’s acquisition was the largest since September 2023, when China’s reserves increased by 24 tonnes, according to Chinese market tracker Wind Info. The latest addition also surpassed purchases made during the two preceding months.

China bought 18.5 tonnes of gold in August after purchasing 18 tonnes in July. The September figure therefore represented another acceleration in the central bank’s accumulation as bullion prices pulled back.

The increased gold holdings came as China’s foreign exchange reserves declined. Reserves stood at $3.4 trillion at the end of September, according to data from the State Administration of Foreign Exchange, known as SAFE.

That total was down $38.1 billion, or 1.11%, from the previous month. SAFE attributed the decline to the combined effects of currency translation and movements in asset prices during September.

The agency said the U.S. dollar index rose while prices for major global financial assets generally fell during the month. It also said China’s economy remained broadly stable and that new growth drivers were gaining strength.

Those economic conditions supported the overall stability of the country’s foreign exchange reserves, according to SAFE. At the same time, the PBoC has significantly increased its gold purchases since the metal’s price retreated earlier in the year.

The latest World Gold Council update on central bank gold purchases highlighted China and Poland as the leading sovereign buyers in 2026. Marissa Salim, Senior Research Lead, APAC, described continued buying activity among the largest participants.

“Global central banks remain on pace with gold accumulation this August, with reported net buying totalling 39t,” Salim wrote. “Large, consistent buyers of gold in 2026 showed continued activity in the month, with China taking the lead, followed by Uzbekistan and Poland.”

Central banks reported purchasing a total of 170 tonnes through August 2026, according to Salim. She placed the month’s activity within the broader pattern of reported central bank gold acquisitions from 2016 through 2025.

“Putting August’s total in broader context, analysis of reported central-bank gold purchases between 2016 and 2025 suggest modest seasonal variation, although differences across years remain substantial,” Salim noted. She added that economic or geopolitical uncertainty may play a role, although further analysis would be required to identify persistent underlying drivers.

Salim also pointed to the composition of the buyers participating in August, not merely the total volume acquired. She said demand was again led by familiar central banks pursuing accumulation programs extending across multiple years.

Poland remained the leading buyer for the year through August, purchasing 98 tonnes, while China was catching up, Salim wrote. Poland held 648 tonnes in its reserves, putting its target of 700 tonnes within reach in the coming months.

China reported adding 80 tonnes to its gold reserves during the year through August, ranking second behind Poland, according to Salim. The subsequent September purchase added another 21 tonnes to China’s official holdings while extending the central bank’s uninterrupted buying run.

The latest figures showed that China’s gold accumulation continued even as its broader foreign exchange reserves declined during September. Its largest monthly gold purchase in three years also placed the country among the most active official buyers tracked by the World Gold Council.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.