Central Banks Keep Buying Gold with China Leading August Purchases

Central banks continued adding gold to their reserves in August, with China leading the month’s reported purchases. The latest figures show that gold remains part of reserve strategies even as high prices make each addition more expensive.

Reported net buying reached 39 tonnes in August, bringing the year-to-date total to 170 tonnes, according to the World Gold Council’s update published on 6 October.

The figures cover activity through August, where available. They offer a view of official buying with a reporting delay, rather than a snapshot of what central banks are purchasing today.

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China led the month while Poland led the year

The People’s Bank of China added 20 tonnes in August, its 22nd consecutive month of reported buying.

Uzbekistan and Poland each added 8 tonnes during the month. Poland remained the largest reported buyer for the year to date, with purchases of 98 tonnes, ahead of China.

Buying was not universal. Russia reported sales of 6 tonnes in August, while Jordan sold 3 tonnes. The 39-tonne net figure reflects purchases after sales are taken into account.

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Why central banks continue to hold gold

Central banks manage reserves to help their countries meet international obligations and respond to financial stress. Their priorities extend beyond the return on a single asset.

The World Gold Council identifies safety, liquidity, and return as central objectives of reserve management. Gold sits alongside foreign currencies and bonds because it brings different characteristics to the portfolio.

A bond is a promise from its issuer to make payments. Physical gold held outright does not depend on a government or company repaying a debt. That distinction can matter when reserve managers are concerned about financial or geopolitical risks.

Gold can also behave differently from other reserve assets. Holding it can reduce a portfolio’s dependence on one currency or bond market, although diversification does not eliminate losses.

These motivations appear in the World Gold Council’s 2026 reserve-management survey. Respondents highlighted gold’s performance during crises, its role as a store of value, and its diversification benefits.

Our guide to why central banks buy gold explains how these considerations influence reserve decisions.

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High prices do not remove the need for diversification

Gold does not pay interest. When bonds offer attractive yields, buying gold means giving up income that could have been earned elsewhere.

But a reserve manager may still choose gold if it improves the balance of the overall portfolio. An asset can be useful because of how it behaves during stress, even when another asset offers a higher yield.

That helps explain continued official buying at elevated prices. It does not mean central banks ignore cost. Prices, existing allocations and liquidity needs can all affect when they buy and how much they add.

The World Gold Council’s second-quarter central-bank report describes continued but uneven demand, with reserve objectives supporting purchases while individual countries’ needs influence transactions.

For the wider market relationship, our guide to how interest rates affect gold prices explains why higher yields can pressure gold without determining every price move.

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Reported purchases are only part of the picture

The 170-tonne year-to-date figure should be read as reported net activity. It is not a complete estimate of all official-sector demand worldwide.

The World Gold Council’s reserve database draws on IMF statistics and other sources. Monthly files generally arrive with a delay, and some countries report later than others. Figures can change as information becomes available.

Its quarterly Gold Demand Trends reports use a broader assessment that also includes estimates of buying not yet disclosed. The Q2 report specifically identifies unreported official buying as a significant part of the market.

This is why a reported monthly total and a quarterly demand estimate can differ. They cover different periods and use different approaches; they should not be treated as interchangeable numbers.

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China has two separate sources of gold demand

Official buying adds another dimension to China’s gold market. Alongside central-bank purchases, households have been buying more investment gold.

As we explained in China Is Buying Gold Differently, Chinese bar-and-coin demand overtook jewellery consumption in 2025, followed by a record first-half total in 2026.

These are separate decisions. A household might buy a bar to diversify savings, while a central bank manages national reserves. Their purchases should be measured separately, even when both reflect interest in gold as a store of wealth.

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What the latest buying means for gold

The August figures show that official demand remained positive. They also show why the identity of buyers and sellers matters as much as the headline total.

The longer-term intentions remain supportive. In the World Gold Council’s 2026 survey findings, 89% of respondents expected global central-bank gold holdings to increase over the following 12 months. A record 45% expected their own institution to add gold. Those are intentions, rather than completed purchases.

Central-bank buying can support demand, but it cannot guarantee a price rise. Exchange rates, bond yields, investor flows and selling elsewhere in the market still matter. Readers can follow current gold prices on GoldRates alongside these developments.

Gold remains part of reserve strategies even when prices are high. Its role helps explain sustained official buying, while the different decisions of individual central banks explain fluctuations in monthly totals.