China estimated to buy far more gold than official reports show

In 2023, the current Treasury Secretary Scott Bessent had floated a scenario wherein China could develop a Renminbi backed by or exchangeable for gold to bypass the U.S. dollar system.

Three years later, as gold hovers near $4,700 per ounce, new market data reveals Beijing is quietly acquiring "far more gold" than official reports suggest, fueling a broader central bank shift toward the precious yellow metal.

China's Hidden Bullion Accumulation Analysis of London over-the-counter (OTC) market data from Goldman Sachs and The Kobeissi Letter reveals that China acquired an estimated 88 tonnes of gold in May and June alone, which is substantially higher than official state figures.

This estimated accumulation coincides with Bloomberg data showing China steadily liquidating its U.S.

Treasury holdings down toward $633 billion while expanding its gold reserves.

The shift mirrors Bessent's 2023 warning that nations facing geopolitical friction would move reserves out of Western fiat debt and into physical gold held within their own borders.

BREAKING: China acquired +40 tonnes of gold in June via the London OTC market, marking their 2nd-largest monthly purchase since early 2025.

This is 167% more than the official +15 tonnes reported by China's central bank for June.

This also follows an estimated +48 tonnes… pic.twitter.com/aSPZysWtWS — The Kobeissi Letter (@KobeissiLetter) August 23, 2026 Read Also: China And Stablecoin Issuer Tether Ramp Up Gold Accumulation Central Banks Pivot to 'Tangible Assets' China is far from isolated in its strategy.

A World Gold Council survey shows 45% of global central banks plan to boost their gold reserves amid persistent inflation and economic turmoil.

Central banks continuing to build holdings is a 'strong signal' of how seriously governments are treating market volatility, observed Rick Kanda, Managing Director at The Gold Bullion Company.

Kanda emphasized that nations are actively "reducing reliance on fiat currencies and insulating themselves from geopolitical risk" by pivoting to physical bullion as a stable, 'tangible asset.' Macro Policy Uncertainty Fuels Bullion Surge The precious metal's rally is further supported by Treasury yields and shifting central bank expectations.

Market analyst Alexander Lis pointed out that softer inflation expectations and Treasury buybacks have created a "stronger tailwind" for gold.

Meanwhile, macro strategist Bob Elliott noted that Washington's administrative efforts to manage bond markets reflect broader "policy ineptitude," which has unintentionally redirected liquidity into precious metals rather than traditional equities.

As central banks accelerate reserve diversification away from U.S. debt, asset owners holding physical bullion remain the primary beneficiaries of this structural monetary shift.

How Has Gold Performed? At the last check, the Gold Spot US Dollar was trading 0.96% higher at $4,648.73 per ounce.

It has gained 37.84% over the year, declined by 9.71% over the last six months, and gained 14.61% over the last month.

Here's how some of the gold and gold miners-linked ETFs have performed.

Gold And Gold Mining ETFs YTD Performance 6-Month Performance One Year Performance SPDR Gold Trust (NYSE: GLD ) 6.83% -9.66% 37.77% iShares Gold Trust (NYSE: IAU ) 6.92% -9.55% 37.98% SPDR Gold MiniShares Trust (NYSE: GLDM ) 6.31% -9.48% 38.15% abrdn Physical Gold Shares ETF (NYSE: SGOL ) 6.26% -9.49% 38.11% iShares Gold Trust Micro (NYSE: IAUM ) 6.26% -9.49% 38.23% VanEck Gold Miners ETF (NYSE: GDX ) 18.41% -3.23% 73.44% VanEck Junior Gold Miners ETF (NYSE: GDXJ ) 16.53% -6.63% 77.33% Read Also: Central Banks Extend Gold Buying Streak To 23 Months As Reserves Grow By 25 Tonnes YTD: GLD, IAU, GDX And Other ETFs In Focus Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors.

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