China may be becoming one of the strongest structural buyers underneath the gold market. That is the thesis from Lukas Ekwueme, who argued in an October 14 post that the People’s Bank of Chin
China may be becoming one of the strongest structural buyers underneath the gold market.
That is the thesis from Lukas Ekwueme, who argued in an October 14 post that the People’s Bank of China has consistently increased gold purchases as prices weakened during 2026.
The broad direction of his argument is supported by official-sector data.
The World Gold Council reported that the PBoC bought 23 tonnes of gold in September, its largest monthly addition since October 2023. That extended China’s official buying streak to 23 consecutive months and lifted its Q3 purchases to 63 tonnes, the strongest quarter since Q3 2023.
Ekwueme’s chart compares gold futures with monthly Chinese central bank purchases.
His key observation is that purchases accelerated as gold moved lower from its early-2026 peak.
The World Gold Council confirms that the PBoC had already stepped up activity before September. China added around 20 tonnes in July and another 20.2 tonnes in August, with August then representing the largest monthly increase since October 2023.
By September, the buying accelerated again to 23 tonnes.
China’s official gold holdings reached roughly 2,410 tonnes by the end of September, which represents about 8.5% of total reserves. Year to date, the PBoC had accumulated another 103 tonnes.
That gives Ekwueme’s “floor” argument some substance: the PBoC has repeatedly added to reserves during weakness.
Read also: The Hidden Reason Behind Gold Price Crash
The gold chart also makes another point.
Gold futures peaked above $5,300 earlier in 2026, then entered a broad correction toward roughly $4,000-$4,200.
Source: X/@ekwufinance
Instead of Chinese buying slowing during that decline, reported purchases increased.
That divergence is what Ekwueme finds bullish.
His interpretation is that China is absorbing physical supply at lower prices and potentially reducing the amount of gold available to the broader market.
The first part is supported by the reserve data.
The stronger claim that China is “draining physical gold supplies” is harder to prove from central bank purchases alone, especially because China’s broader wholesale gold demand has actually been weak. The World Gold Council said Q3 wholesale demand totaled 234 tonnes, down 21% year over year and 44% below the 10-year average, largely because jewellery demand remained soft.
Not in a literal sense.
Central bank demand can provide strong underlying support, but it cannot guarantee that gold will not trade lower.
The latest CPI-driven selloff showed that Treasury yields, the dollar and Fed expectations can still overpower physical-demand support in the short term. Gold recently fell below $4,100 as higher inflation pushed rate-hike expectations and bond yields higher.
Still, the structural argument remains important.
Reuters noted that central bank buying, especially from China and Poland, has helped gold remain resilient above $4,000 despite unusually high U.S. bond yields.
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The post Gold Price Today: Gold Finds Support as China Accelerates Central Bank Buying appeared first on CaptainAltcoin.
