China Adds 23 Tonnes of Gold as Reserve Value Drops $26.6 Billion

China increased its reported gold reserves by about 23 tonnes in September, but the dollar value of the holdings fell by $26.6 billion as bullion prices declined. The divergence offers a clearer measure of the month than the buying streak alone: Beijing held more metal at the end of September, yet its reported gold reserve asset was worth substantially less.3

The People's Bank of China's gold holdings rose to 77.47 million fine troy ounces from 76.73 million at the end of August, according to the State Administration of Foreign Exchange's official reserve-assets table. The 740,000-ounce increase is equivalent to approximately 23.02 metric tonnes and extended China's run of reported monthly additions to 23 months. It was larger than August's 650,000-ounce, or roughly 20.2-tonne, increase.3

The same official table values China's gold at $323.52 billion at the end of September, down from $350.08 billion a month earlier. That $26.56 billion decline is a change in the reported dollar value of the total holding, not a realised trading loss or the cost of September's purchase. The monthly reserve release does not establish the prices or dates at which the central bank acquired the additional metal.3

The distinction matters when assessing China's reserve strategy. Rising ounces indicate continuing reported accumulation; falling dollar value reflects the market valuation of a much larger existing stock. The two measures can move in opposite directions without implying that the central bank sold gold or abandoned diversification. At approximately 2,410 tonnes, the September holding also represents a substantial stock whose valuation is sensitive to movements in bullion prices.3

The broader foreign-exchange position weakened during the month. SAFE reported foreign-currency reserves of about $3.400 trillion at the end of September, a $38.1 billion, or 1.11%, decline from August. The agency attributed the change to dollar appreciation, movements in global financial-asset prices and exchange-rate translation. That figure refers to foreign-currency reserves, a separate line from monetary gold in SAFE's official reserve-assets statement; the two changes should not be added together as though they measured the same pool of assets.34

The latest purchase also extends the acceleration evident in the preceding months. August's addition had already exceeded July's 640,000 ounces, as detailed in Samarium's [earlier coverage of China's August gold reserves](https://www.samarium.dev/news/china-s-august-gold-purchase-hit-20-22-tonnes-its-biggest-since-november-2024). September's 740,000-ounce increase moves the disclosed monthly pace higher again. That is evidence of a larger reported increment, although the reserve table alone cannot explain the policy motive or establish that purchases will continue at the same rate.36

Investment demand offered a separate counterpoint to the price decline. World Gold Council data show physically backed gold ETFs attracted $10 billion in September and added 67 tonnes, lifting global holdings to a record 4,256 tonnes. The council attributed pressure on gold to higher US yields, a stronger dollar and reduced futures positioning. These ETF figures describe investment-fund flows, not central-bank reserve purchases, and the distinction is important when interpreting aggregate demand.5

For investors, September's Chinese data support two conclusions, neither of which requires treating official buying as a guaranteed price floor. Reported accumulation continued at a faster monthly pace, while a price decline still reduced the dollar value of the country's gold stock. The next SAFE reserve statement will establish whether the quantity of metal rises again; the valuation line will remain sensitive to bullion prices regardless of that decision.3