The People's Bank of China (PBOC) increased its gold holdings by approximately 23 tons in September, bringing its reported reserves to about 2,410 tons. This marks the largest monthly purchase since October 2023 and the 23rd consecutive month of additions. As of the end of September, gold accounted for 8.5% of China's total official reserves, up from 5.5% at the end of 2024. Analysts suggest this move aims to reduce reliance on dollar-denominated assets and hedge against financial and geopolitical risks. Concurrently, Chinese household demand for gold has also surged due to domestic economic uncertainties, with purchases of gold bars and coins increasing by 28.4% year-on-year in the first half of 2026.