China now fifth largest gold holder, could beat France and Italy to enter top 3 spot this year, finds data

Sun Oct 12 2026

China is now the fifth-largest gold holder globally after the United States, Germany, Italy and France, according to data analysed by the Kobeissi Letter.

It added that the country has increased its gold purchases month on month this year and is on track to beat France and Italy to take third spot as the largest gold holder as early as sometime in 2026.

China buying the dip in gold: Data shows

According to the platform, till September 2026, China has officially acquired over 103 tonnes of gold, raising total holdings to a record 2,410 tonnes. This includes the more than 23 tonnes of gold officially bought by China’s central bank in September. Notably, this marks its 23rd consecutive monthly gold purchase and is its largest monthly purchase since September 2023, it added.

China is aggressively buying the dip in gold, the platform said in a post on social media site X (formerly known as Twitter). It noted that in July and August 2026 too, the People’s Bank of China (PBC) purchased over 20 tonnes of gold each month, it added.

If the buying trend continues, China, which now holds a record 2,410 tonnes of gold, is poised to surpass both France (holds 2,437 tonnes of gold — gap of 27 tonnes) and Italy (2,452 tonnes — gap of 42 tonnes), by 2026-end, The Kobeissi Letter added.

Gold price rises as sliding oil eases inflation concerns

Bloomberg on Monday, October 12, reported that the cost of gold rose as sliding oil prices eased inflation concerns. Optimism is driven by traders watching for signals that the US Federal Reserve may hold back on more interest rate hikes, it added.

The report added that investment demand for gold has also provided support for gold in recent days. Gold-backed exchange-traded funds added holdings last week, while the People’s Bank of China has accelerated its buying, it said.

Gold bullion traded above $4,200 an ounce, after rising 1.3% last week. Spot gold edged 0.3% higher to $4,206.86 an ounce as of 11:49 am Singapore time, while silver rose 0.5% to $61.12. Platinum and palladium advanced. The Bloomberg Dollar Spot Index declined 0.1%.

The decline in long-end yields along with easing oil prices are set to provide some “cautious optimism” for gold, Christopher Wong, a strategist at the Oversea-Chinese Banking Corporation told the publication. “Softer inflation, particularly if accompanied by further declines in long-end yields and the USD, could see gold extend its recovery,” he added.

 What are investors watching?

The Bloomberg report said that gold has lost a fifth of its price since the US-Iran war started in late February. Disruptions to energy supplies from the Middle East have kept inflation risks elevated and prompted some central banks to tighten monetary policy, a headwind for the non-yielding precious metal. The market is waiting for inflation data on Wednesday for more clarity.

The planned appearance by Fed chairman Kevin Warsh on Thursday in a discussion at the International Monetary Fund’s annual meeting in Bangkok could also provide insights into the central bank’s thinking. Two other closely followed Fed officials, Governor Christopher Waller and Cleveland Fed President Beth Hammack, are also speaking.

Source: https://www.livemint.com/