Level 1 - Absolute Beginner

China's central bank buys gold. It buys more gold every month for almost two years.

In September it buys 23 tonnes of gold. Now the bank holds about 2,400 tonnes.

Gold is expensive now. One ounce of gold costs about 4,100 dollars.

Shops in China sell less gold jewellery. It costs too much. But gold funds in China grow.

gold

A yellow metal that costs a lot of money.

central bank

The big bank of a country. It looks after the country's money.

buy

To pay money and get something.

price

How much money you pay for something.

tonne

A big weight. One tonne is 1,000 kilos.

ounce

A small weight. People use it to weigh gold.

jewellery

Pretty things people wear, like rings and chains.

fund

A box of money from many people. It can hold gold.

Level 2 - Elementary

China's central bank, the People's Bank of China, bought 23 tonnes of gold in September 2026. It was the bank's biggest monthly purchase since October 2023. The bank has now bought gold for 23 months in a row.

China's official gold holdings reached 2,410 tonnes. That is 8.5 percent of all the country's reserves. Total reserves were 3.8 trillion US dollars, which is 2 percent lower than a month earlier.

In early October the international gold price stayed above 4,100 dollars an ounce. One market report on October 13 put physical gold near 4,184 dollars an ounce, with silver around 60 dollars an ounce.

Ordinary buyers in China do not act like the central bank. Chinese gold funds added 11 tonnes in September and held a record 304 tonnes at the end of the month. But wholesale demand for gold was 22 percent lower than a year earlier.

purchase

Something you buy, or the act of buying it.

holdings

The total amount of something that a person or bank owns.

reserves

Money and gold a country keeps for safety.

trillion

A very big number: a million million.

physical gold

Real gold you can touch, like bars and coins.

silver

A shiny grey metal. It costs less than gold.

wholesale demand

How much gold shops and makers buy in large amounts.

record

The highest level ever reached.

Level 3 - Intermediate

China's central bank added 23 tonnes of gold in September 2026, its largest monthly purchase since October 2023, which brought third quarter buying to 63 tonnes and purchases so far this year to 103 tonnes. Official holdings now stand at 2,410 tonnes, or 8.5 percent of total reserves, and those reserves fell 2 percent over the month to 3.8 trillion US dollars, mainly because foreign exchange assets lost value.

The buying went on even though prices dipped during the month. In September the LBMA Gold Price PM in US dollars fell 8.5 percent, while the Shanghai benchmark in renminbi fell 5.5 percent. Across the third quarter, however, the renminbi gold price rose 3 percent, cutting its loss for the year to 7 percent. By early October the international price was holding above 4,100 dollars an ounce, and a market report dated October 13 put physical gold near 4,184 dollars an ounce, with silver around 60 dollars an ounce.

Chinese investors and Chinese shoppers are now pulling in opposite directions. Gold exchange traded funds added 11 tonnes in September, a third straight monthly rise that took holdings to a month end record of 304 tonnes, on inflows of 11 billion renminbi, about 1.6 billion US dollars. Wholesale demand, measured by Shanghai Gold Exchange withdrawals, was 92 tonnes, up 48 percent on the month but 22 percent lower than a year earlier.

The World Gold Council says current macroeconomic conditions should keep investment demand supported, and it expects a seasonal boost from the fourth quarter jewellery season. At the same time it warns that poor affordability and weak consumer confidence may keep holding back tonnage demand. Reports dated October 15 said central banks' gold purchases worldwide had hit a two year high and cited expectations that prices could reach record highs within two years. The council will publish a detailed China demand report in early November.

benchmark

A standard price that the market uses as a reference point.

renminbi

The currency of China.

exchange traded fund

A fund traded like a share that holds assets such as gold for investors.

inflows

Money coming into a fund or a market.

foreign exchange assets

Money and bonds a country holds in other countries' currencies.

affordability

How easily ordinary people can pay for something.

consumer confidence

How willing shoppers feel about spending money.

tonnage demand

Demand measured by weight rather than by value.

Level 4 - Advanced

China's central bank is behaving like a buyer with a long horizon and no interest in the daily tape. The People's Bank of China added 23 tonnes of gold in September 2026, its largest monthly purchase since October 2023, lifting third quarter buying to 63 tonnes, the strongest quarter since the third quarter of 2023, and accumulation so far this year to 103 tonnes. Official holdings now stand at 2,410 tonnes, equal to 8.5 percent of total reserves, which slipped 2 percent over the month to 3.8 trillion US dollars as foreign exchange assets lost value.

What makes the purchase notable is its timing. September was a weak month for the metal, with the LBMA Gold Price PM in US dollars down 8.5 percent and the Shanghai benchmark in renminbi down 5.5 percent. Zoom out and the quarter looks different: the renminbi price rose 3 percent over the three months, narrowing its loss for the year to 7 percent. By early October the international price was holding above 4,100 dollars an ounce, and a market report dated October 13 put physical gold near 4,184 dollars an ounce, with silver around 60 dollars an ounce.

Within China the official buyer and the household buyer have parted company. Gold exchange traded funds absorbed 11 tonnes in September, a third consecutive monthly rise that carried holdings to a month end record of 304 tonnes on inflows of 11 billion renminbi, about 1.6 billion US dollars, and third quarter inflows reached 27 billion renminbi, about 3.9 billion US dollars. Wholesale demand told the opposite story. Shanghai Gold Exchange withdrawals of 92 tonnes were 48 percent higher on the month but 22 percent below a year earlier, and the quarter's 234 tonnes were 21 percent down year on year.

The gap comes down to affordability. The World Gold Council says macroeconomic conditions should keep investment demand supported and expects a seasonal lift from the fourth quarter jewellery season, yet it warns that poor affordability and weak consumer confidence may keep holding back tonnage demand. Third quarter wholesale volumes ran 44 percent below the ten year average. Reports dated October 15 said central banks' gold purchases worldwide had reached a two year high and cited expectations that prices could reach record highs within two years. A detailed China demand report is due in early November.

accumulation

A steady build up of a holding over time.

long horizon

A way of investing that looks many years ahead.

the daily tape

The stream of day to day market prices.

benchmark

A reference price the whole market prices against.

consecutive

Following one after another without a break.

year on year

Compared with the same period twelve months earlier.

tonnage demand

Demand measured by physical weight rather than by value.