China's gold reserves rose 1% in August. According to the central bank's data, gold holding increased to 54.45 million troy ounces in August from 53.93 million ounces in July. The central bank wants to diversify its foreign exchange reserves.

China's gold reserves climbed 57% since 2009. The country overtook Russia as the fifth-largest holder.

According to World Gold Council data, China holds only about 1.6% of its foreign reserves in gold, compared with 73% for the U.S.