China and Central Banks Boost Gold Reserves Amid Geopolitical Tensions

• •China's central bank bought 23 tonnes of gold in September 2026, its largest purchase in nearly three years.
• •Global central banks purchased a record 289 tonnes of gold in Q2 2026, reflecting a strategic shift towards bullion.
• •Gold has surpassed US Treasuries as the world's largest reserve asset by value, indicating changing financial priorities.

In response to geopolitical risks and financial instability, China has increased its gold reserves for the 23rd consecutive month, purchasing approximately 23 tonnes in September 2026. This move aims to reduce dependence on US dollar assets and safeguard against potential asset freezes, as seen with the $300 billion in Russian reserves frozen by Western nations. Central banks globally, including China, are rapidly accumulating gold, with a record 289 tonnes purchased in Q2 2026, highlighting a shift towards gold as a primary reserve asset. Analysts note that gold's appeal is growing as a protective measure against the volatility of foreign-held assets, particularly for emerging economies. The World Gold Council reports that gold now surpasses US Treasuries as the largest reserve asset by value, indicating a significant trend in global financial strategies.