China is importing a record amount of gold, driven by central-bank diversification and weak property and stock markets, which are prompting both institutional and retail buyers to seek safety in bullion [1]. The People's Bank of China (PBOC) has purchased gold for 23 consecutive months, with its latest addition of about 23 tonnes in September marking the largest monthly purchase in nearly three years, according to State Administration of Foreign Exchange data [1]. This extends the longest purchasing streak since at least 2015 [1].
Chinese households and companies are increasingly turning to gold as a safe haven, spending a record $158.8 billion and importing more than 1,000 tonnes in the first eight months of 2026, surpassing the $96.5 billion and 886 tonnes imported in all of 2025, based on customs data [1]. Consumer gold imports in China hit a record in the first eight months of 2026, with surging premiums in China's onshore prices indicating stronger winter seasonal demand, according to Aakash Doshi, head of gold strategy at State Street Investment Management [1].
The accumulation of gold comes as prices have fallen, with gold pulling back more than 8% in September to about $4,176 an ounce, after reaching a record above $5,500 in January [1]. Despite the recent price drop, Doshi forecasts gold prices to rise to $4,750 to $5,500 per troy ounce by the end of the first quarter in 2027, buoyed by robust demand [1].
Analysts attribute China's gold buying to political motives, including a desire to reduce dependence on the U.S. dollar and Treasuries, especially after Western governments froze Russia's central bank assets in 2022, highlighting the vulnerability of foreign-held reserves [1]. China has reduced its holdings of U.S. Treasurys to an 18-year low of $618 billion in July, continuing its diversification of foreign-exchange reserves [1]. Domestic investors have few alternatives, with the real estate market in a multiyear slump and the benchmark CSI 300 index down around 8% this year, compared to the S&P 500's 13% gain [1].
CONCLUSION
China's record gold imports and sustained central bank purchases are providing a floor under bullion prices amid economic uncertainty and diversification away from the U.S. dollar. Analysts expect robust demand to support higher gold prices into 2027. The shift underscores gold's growing role as a safe haven for Chinese investors and institutions.