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查看配图：LBMA suspends Shandong Gold refinery over US labour listChina’s gold-backed exchange-traded funds held a record 304 tonnes at the end of September, even as bullion prices fell. (Stock image by pla2na.)
Posted By: Colin McClelland October 16, 2026
China’s central bank bought more gold in September than in any month for almost three years, accelerating its bullion accumulation as the country’s jewellery market struggled.
The People’s Bank of China added 23 tonnes, taking third-quarter purchases to 63 tonnes, the strongest quarterly total since 2023, the London-based World Gold Council said in a report Thursday. Yet wholesale gold demand was 44% below its 10-year average during the quarter, weighed down by weak jewellery consumption.
“Persistently weak jewellery consumption was the main drag,” council researcher Ray Jia wrote. “The current macro conditions should remain supportive for bullion investment going forward.”
The divergence shows gold’s strength as a reserve and investment asset alongside weakness in consumer buying. Chinese gold-backed exchange-traded funds (ETFs) also accumulated bullion during the quarter, with holdings reaching a month-end record in September despite falling gold prices.
September marked the central bank’s 23rd consecutive month of reported purchases. Its official gold holdings reached 2,410 tonnes, accounting for 8.5% of total reserves, after additions of 103 tonnes since the start of the year.
Investment demand
Chinese gold ETFs added 11 tonnes in September, their third consecutive monthly increase, taking holdings to 304 tonnes. They accumulated 27 tonnes over the third quarter.
Weak domestic equities encouraged investors to diversify, while falling Chinese government bond yields reduced the income investors forgo by holding gold, the council said. Continued central-bank purchases also encouraged investment demand.
The buying forms part of a broader ETF investment surge that persisted through September’s bullion sell-off. The London gold benchmark fell 8.5% during the month, while the Shanghai benchmark declined 5.5% in yuan terms.
Chinese ETF inflows continued into early October as domestic stock-market weakness sustained demand for diversification, the council said.
Consumer squeeze
Banks, jewellers and other participants withdrew 234 tonnes from the Shanghai Gold Exchange during the third quarter, down 21% from a year earlier and well below the 10-year quarterly average of 418 tonnes.
The withdrawals serve as a gauge of wholesale demand rather than a direct measure of jewellery sales. The council identified persistently weak jewellery consumption as the main reason for the shortfall.
September brought a seasonal improvement as Chinese jewellers replenished inventories ahead of the National Day holiday in early October. Exchange withdrawals rose 48% from August to 92 tonnes, though they remained 22% below the year-earlier level.
Lower prices also encouraged purchases of bullion, the council said, citing anecdotal evidence of investors treating the retreat as an opportunity to buy.
Demand for jewellery, bars and coins improved during the late-September Mid-Autumn Festival and the subsequent National Day holiday. While the fourth quarter traditionally brings stronger jewellery sales, affordability and low consumer confidence could continue to constrain volumes, the council said.
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