Why is China buying up gold?

What the report says

China has been steadily expanding its gold reserves, with the People’s Bank of China reporting purchases for a 23rd straight month in September and its largest monthly addition in nearly three years, according to Al Jazeera. The central bank’s holdings rose to about 2,410 tonnes, and gold made up 8.5 percent of China’s official reserves at the end of September, up from 5.5 percent at the end of 2024.

Analysts cited by the outlet said the buying reflects Beijing’s effort to reduce reliance on US dollar assets, especially US government debt, and to make its reserves less vulnerable to financial shocks, sanctions or asset freezes. The article pointed to the 2022 Western freeze of Russian overseas assets as a key example of why gold stored at home can be seen as a safer reserve asset. It also noted that concerns about high US debt and broader geopolitical tensions are shaping the shift.

Al Jazeera also said Chinese households are buying more gold for different reasons, including a desire to protect savings amid weakness in the property and share markets and uncertainty about the domestic economy. Purchases of gold bars and coins in China rose in the first half of 2026 compared with a year earlier, even as prices fell during the month.

The article said experts do not view this as an abrupt move away from the dollar, but rather a gradual diversification. It also placed China within a wider trend of central bank gold buying among emerging economies, while noting that the dollar remains the dominant global reserve currency.