According to a report from MarketCapOf detailing China’s purchasing habits, the nation’s gold reserves reached a record 2,410 tonnes in September 2026 after the People’s Bank of China acquired 23 tonnes, marking its largest monthly purchase in nearly three years. This addition extends a 23-month streak of acquisitions by China. Meanwhile, gold’s proportion of global reserves has climbed to approximately 20% compared to 5.77% in 2007, with central bank accumulation currently influencing the gold price forecast.
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China’s Gold Buying Spree Helps Hold Up Gold Prices
Data provided by the State Administration of Foreign Exchange—as highlighted in a Pluang report concerning record Chinese gold imports—shows that this buying streak is now the longest recorded since at least 2015. Gold reserves currently account for roughly 9% of China’s foreign exchange reserves, and Beijing has incorporated over 103 tonnes this year, placing it second only to Poland.
Figures from The Market Ear indicate that gold’s share of international reserves hovered between 6% and 10% for over a decade before accelerating after 2020, with China’s holdings serving as a consistent driver of that upward trend.
Why China Keeps Buying Gold
Julius Baer Group analyst Carsten Menke noted that Beijing’s primary driver is political, fueled by a desire to reduce its reliance on the US dollar and Treasuries. Furthermore, Menke estimated that 110 tonnes purchased throughout the year went unreported, suggesting China’s actual gold reserves may exceed official figures.
Beyond central bank activities, retail buyers are also participating. Amid struggles in the domestic property and stock markets, China allocated a record $158.8 billion toward more than 1,000 tonnes of gold imports during the first eight months of 2026.
Ole Hansen, head of commodity strategy at Saxo Bank, stated:
“The opportunity cost of holding gold is also much lower in China than in many Western markets.”
Gold Price Forecast Holds Firm As Central Banks Keep Buying
Despite gold falling more than 8% in September to roughly $4,176 an ounce—down from a record high above $5,500 in January—China’s continued acquisitions have prevented further declines.
ING Bank commodities strategist Ewa Manthey remarked:
“Chinese buying has become an important source of structural support for gold prices.”
State Street Investment Management’s Aakash Doshi projects a gold price target between $4,750 and $5,500 per troy ounce by the end of the first quarter of 2027. Central bank demand appears poised to persist, with 45% of 74 surveyed central banks in a World Gold Council poll indicating plans to acquire more gold. Even with these gains, China’s reserves remain under a third of US holdings.
Ghana Eyes BRICS As Gold Demand Grows
Ghana, a prominent West African gold producer, is also seeking membership in the bloc. According to Africa Business Insider, the nation intends to formally apply for BRICS membership, which would align it with countries like China, India, and Russia as China’s reserves continue to break records. Foreign Affairs Minister Samuel Okudzeto Ablakwa disclosed the decision on October 6 via a post on X:
“On the occasion of this important visit, I announced Cabinet’s strategic decision to apply for BRICS membership. The Government of Ghana is determined to position Ghana as a reliable friend to all as we expand our geopolitical and economic frontiers, anchored fundamentally on our national interest and freedom of choice in this fast-evolving multipolar world.”
Certain developments could potentially dampen demand. Hansen noted that a rebound in China’s equity and real estate sectors, a stronger yuan, or higher deposit rates might weigh on purchasing activity. A larger contraction would require central banks to abandon reserve diversification efforts alongside an easing of geopolitical tensions—outcomes he does not foresee occurring soon. Supported by rising Chinese reserves, an increased global reserve share, and ongoing central bank buying, the 2027 gold price forecast maintains a positive outlook.