China’s central bank added 8.1 metric tons of gold to its reserves last month, or approximately 260,000 ounces. The addition represents the largest single-month purchase since January 2025 and extends an 18-month buying streak. The accumulation pushed total reserves to 74.6 million ounces, reflecting a strategic push to diversify holdings amid geopolitical tensions and volatile bullion markets.
The April increase outpaced March’s addition of 160,000 ounces, coinciding with a dip in gold prices. This sustained buying aligns with a broader trend among global central banks, which net purchased 244 metric tons of gold in the first quarter of 2026. China’s foreign exchange reserves also rose by $68.4 billion in the same period, reaching a total of $3.41 trillion.
Meanwhile, domestic gold production in China, the world’s largest producer, declined in the first quarter of 2026. Output fell to 136.2 tonnes, a decline of 7.1% from the prior year, while consumption across the country totaled 303.3 tonnes in April.
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Consumer appetite for bars, and coins surged in the quarter, fueled by economic uncertainty and a weaker yuan. Retail sales data indicates a double-digit percentage increase in gold purchases year-over-year, with purchases for bars and coins rising 46.4% to 202.1 tons, while demand for jewelry fell to 84.6 tons. This divergence between falling production and rising demand underscores potential supply tightness in the near term.
On the investment front, Chinese funds and wealth managers have ramped up allocations to gold-backed assets. Holdings in gold exchange-traded funds saw inflows for the third consecutive quarter, signaling sustained interest even as spot prices fluctuated.
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