China’s central bank bought another 20 tonnes of gold in August, according to data shared by The Kobeissi Letter, marking the largest monthly purchase since October 2023 and extending the buying streak to 22 consecutive months.
The August purchase contributed roughly 650,000 ounces to Chinese reserves. After adding 20 tonnes in July and 15 tonnes in June, China has now bought 80 tonnes in 2026, compared with only 29 tonnes in all of 2025. Total holdings have reached a record 2,387 tonnes, or about 76.73 million troy ounces.
Gold prices came under pressure after U.S. inflation data was hotter than expected, raising concerns that interest rates could remain elevated. Gold fell from about $4,440 to $4,320 before buyers stepped in, and it recovered toward $4,345.95, down 1.28% on the session. Traders are now watching the Producer Price Index, weekly jobless claims and September 11 CPI. On the chart, bulls need to reclaim $4,350, while a break below $4,320 could expose $4,300.
Global physically backed gold ETFs attracted $17.9 billion in August, the second-largest monthly intake ever recorded, according to The Kobeissi Letter and World Gold Council data. ETF holdings rose by 121 tonnes to a record 4,189 tonnes, while assets under management climbed 16% to $615 billion. European funds received $7.9 billion, North American funds $7.7 billion, Asian funds $2 billion, UK funds $4.4 billion and French funds a record $1.5 billion.
Crypto and macro analyst Qmo pointed to central bank accumulation as a reason gold could stage another major advance, noting that central banks purchased 288.9 tonnes in Q2, up 62% from a year earlier. However, the daily chart shows a head-and-shoulders pattern near $4,300 support, and technical indicators including RSI, MACD and Bull Bear Power still favor sellers.
