China’s central bank bought more gold in September than in any month for almost three years, accelerating its accumulation even as the country’s jewellery market and wholesale demand weakened sharply. The People’s Bank of China added 23 tonnes in September, its 23rd consecutive month of reported purchases, taking third quarter buying to 63 tonnes, the strongest quarterly total since 2023, according to the World Gold Council. Official holdings reached 2,410 tonnes, 8.5 percent of total reserves, after additions of 103 tonnes since the start of the year.
The rest of the Chinese market moved the other way. Wholesale gold demand in the third quarter ran 44 percent below its ten year average, with physical wholesale offtake of 234 tonnes down 21 percent year on year, weighed down by persistently weak jewellery consumption at high prices. “Persistently weak jewellery consumption was the main drag,” council researcher Ray Jia wrote, adding that current conditions should remain supportive for bullion investment.
Investment demand filled part of the gap. Chinese gold backed exchange traded funds accumulated bullion through the quarter and their holdings reached a record 304 tonnes at the end of September, even as bullion prices fell during the month. Central banks globally bought about 5.5 million ounces in the first eight months of 2026, with Poland and China leading, according to council data reported by Shanghai Metals Market.
For gold miners, the composition of demand matters as much as its size. A price held up by reserve diversification and fund inflows, rather than by jewellery fabrication, is more exposed to shifts in official buying pace and real yields than to consumer seasons. September made the point: the largest central bank purchase in nearly three years landed in the same month that gold fell sharply, so official buying cushioned the decline rather than preventing it.