Reasons Behind China’s Gold Purchases
China continues its intensive gold purchasing for the twenty-third consecutive month, adding approximately 23 tons in September, the largest volume in three years. This effort aims to reduce its reliance on the dollar and bolster its reserves of the precious metal. Chinese households and companies regard gold as a safe haven, with the country's gold imports exceeding 1,000 tons during the first eight months of 2026, reaching a record value of $158.8 billion. Despite gold prices declining by more than 8% in September, analysts expect prices to rise between $4,750 and $5,500 per ounce by the end of the first quarter of 2027, supported by strong demand for the metal as a safe haven and China's strategic diversification efforts amid concerns over geopolitical tensions and restricted access to foreign assets, especially U.S. Treasury bonds.
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