China’s central bank added to its gold reserves in October — extending a buying streak to two years — as the precious metal fell almost 7% to end the month below the $4,000-an-ounce support threshold.
Bullion holdings at the People’s Bank of China rose by 830,000 ounces in October, or around 25.8 metric tons, according to official data released Saturday. That’s the 24th consecutive month of accumulation. In particular, the central bank has stepped up purchases in recent months as gold prices have slumped, with additions in the first 10 months of the year totaling around 129 metric tons.
PBOC was the biggest disclosed buyer among global central banks in the third quarter, World Gold Council data showed. Cumulative official-sector purchases reported by the WGC were a net 321 tons in the July to September period, the most since the final quarter of 2024. These accumulations remain a key support to gold prices in an otherwise tepid market.
Bullion touched a one-year low last month and recorded its biggest October decline since the global financial crisis in 2008. It’s rebounded since the US midterm elections this week, but remains down by more than a fifth since the Iran war began in late February. Higher energy prices have fueled inflation and led to tighter monetary policy, which is typically a headwind for non-yielding bullion.
PBOC’s holdings influence the buying patterns of Chinese households. Many purchased gold at around $4,000 an ounce in October, expecting that central-bank purchasing would help support prices in the long run.
