China Adds 650,000 Ounces of Gold to Reserves in August

By CoinAINews Staff

September 7, 2026

China added 650,000 fine troy ounces of gold to its official reserves in August, marking the country's largest monthly increase since October 2023, according to the latest data from the People's Bank of China (PBOC).

The purchase lifted China's official gold holdings to 76.73 million fine troy ounces at the end of August, equivalent to roughly 2,386.6 metric tonnes. It also extended the PBOC's gold-buying streak to 22 consecutive months.

The August increase is notable because China's central bank continued accumulating gold even as bullion prices rose sharply during the month. The latest data adds to a longer-running trend of official-sector gold buying and reserve diversification.

China Added About 20.2 Tonnes of Gold in August

The PBOC's reported gold holdings increased from 76.08 million ounces at the end of July to 76.73 million ounces at the end of August.

Metric	August 2026
Gold reserves	76.73 million fine troy ounces
Monthly increase	650,000 ounces
Approximate increase	20.2 metric tonnes
Gold-buying streak	22 consecutive months
Previous larger monthly increase	740,000 ounces in October 2023

The August purchase was slightly higher than the 640,000 ounces added in July and substantially above the 480,000 ounces added in June. The pace of purchases has therefore increased from earlier in 2026.

Largest Monthly Increase Since October 2023

The 650,000-ounce increase was China's largest monthly addition since October 2023.

That comparison is important because October 2023 remains the previous larger monthly increase in this recent buying cycle. The PBOC added approximately 740,000 ounces that month.

In other words, August's purchase was significant, but it was not an all-time or recent-period record. It was the strongest monthly addition since the 740,000-ounce increase recorded in October 2023.

China's Gold-Buying Streak Reaches 22 Months

August extended China's official gold-buying streak to 22 consecutive months.

The buying streak has become increasingly significant as the monthly additions have accelerated during 2026. The PBOC added about 160,000 ounces in March, 480,000 ounces in June, 640,000 ounces in July and another 650,000 ounces in August.

The result is a sustained accumulation trend rather than a one-month change in reserves. China's official gold holdings now stand at approximately 2,386.6 tonnes.

Gold's Role in China's Foreign Reserves

Gold is one component of China's broader reserve portfolio, which also includes foreign currencies and other reserve assets.

China has been gradually increasing the role of gold in its reserves over the longer term. The broader trend is often described as reserve diversification, particularly as central banks around the world have increased their gold holdings.

However, the August data should not be interpreted as proof that China is abandoning the U.S. dollar. China's foreign-exchange reserves remained extremely large, reaching approximately $3.438 trillion at the end of August, according to China's State Administration of Foreign Exchange.

It is therefore more accurate to say that China's continued gold purchases form part of a broader effort to diversify its reserve assets. The latest PBOC data does not establish that the August purchase was specifically intended to reduce U.S. dollar exposure.

Why China's Gold Buying Matters

Central banks are important participants in the global gold market because their purchases can create a relatively long-term source of demand.

China's buying is particularly closely watched because the country is one of the world's largest reserve holders. A sustained increase in official gold holdings can influence how analysts assess the structure of global reserve demand.

The more important signal from August may therefore be the continuity of China's buying rather than the precise size of the month's purchase.

At the same time, one country's reserve purchases do not determine the direction of gold prices. Interest rates, the U.S. dollar, investor flows, inflation expectations and geopolitical developments can all affect bullion markets.

China Kept Buying as Gold Prices Rose

The timing of the August purchase also stands out because gold prices rose strongly during the month.

Gold gained approximately 9.7% in August, according to market reporting, making the PBOC's continued accumulation notable. The value of China's official gold holdings rose sharply as both the amount of gold and the market price of bullion increased.

That does not necessarily mean the PBOC was attempting to time the gold market. Official reserve data shows the purchase occurred, but it does not provide a specific explanation for the timing or size of the transaction.

For that reason, the safest interpretation is that August's purchase continued China's established reserve-accumulation strategy rather than representing a confirmed market-timing decision.

China's Gold Holdings Reach About 2,386.6 Tonnes

Following the August increase, China's official gold reserves reached approximately 2,386.6 metric tonnes.

The increase from July was about 20.2 tonnes, corresponding to the reported 650,000-ounce addition.

China's official gold holdings have now increased for 22 straight months. The accumulated trend is therefore considerably more important than any single monthly number when assessing the PBOC's reserve strategy.

What China's Gold Buying Could Mean for Markets

If China's central bank continues adding gold at an elevated pace, official-sector demand could remain an important factor for the bullion market.

China is not alone in holding or accumulating gold. Central banks globally have increased their interest in the asset in recent years, making official-sector purchases an increasingly important part of the gold-market picture.

Still, investors should avoid treating China's purchases as a direct signal that gold prices must rise. Gold remains influenced by monetary policy, real yields, currency movements, investment demand and broader risk sentiment.

The stronger takeaway is that the PBOC continues to treat gold as a meaningful component of its long-term reserve holdings.

What to Watch Next

The next important data point will be the PBOC's September reserve figures.

If purchases remain elevated, China's 22-month buying streak could continue to attract attention from gold-market analysts and investors. A significant slowdown would provide a different signal about the pace of official-sector accumulation.

For now, the data is clear: China added 650,000 ounces of gold in August, taking its official holdings to 76.73 million ounces and extending its buying streak to 22 months.

Frequently Asked Questions

How much gold did China buy in August 2026?

China added 650,000 fine troy ounces of gold to its official reserves in August 2026, equivalent to approximately 20.2 metric tonnes.

How much gold does China hold now?

China's official gold reserves reached 76.73 million fine troy ounces at the end of August 2026, or approximately 2,386.6 metric tonnes.

Was August China's largest gold purchase since 2023?

Yes. The 650,000-ounce increase was China's largest monthly addition since October 2023. The PBOC added approximately 740,000 ounces in October 2023, which remains the larger monthly increase in this comparison.

How long has China been buying gold?

The PBOC extended its gold-buying streak to 22 consecutive months in August 2026.

Is China reducing its dependence on the U.S. dollar?

China has been diversifying its reserve assets and increasing its gold holdings over time, but the August purchase alone does not prove that China is abandoning the U.S. dollar. China's foreign-exchange reserves remained around $3.438 trillion at the end of August.

Why do central banks hold gold?

Gold can diversify official reserves and does not represent a liability of another government or financial institution. This makes it different from many traditional reserve assets such as government securities.

Will China's gold purchases push gold prices higher?

Continued central-bank demand can support the gold market, but China's purchases are only one factor. Interest rates, the U.S. dollar, investment flows, inflation expectations and geopolitical developments can also influence prices.

Sources

• People's Bank of China
• China Daily — China posts biggest monthly gold reserve increase in nearly three years
• Reuters — China's foreign-exchange reserves in August 2026
• World Gold Council — China gold market update

Bottom line: China's August gold purchase is significant because the PBOC added 650,000 ounces, its largest monthly increase since October 2023, while extending its buying streak to 22 months. The move fits into a broader pattern of reserve diversification, but the available data does not by itself show that China is abandoning the U.S. dollar.