China’s central bank has continued its relentless gold-buying spree, marking the 24th straight month of additions to its reserves. In October, the People’s Bank of China increased its bullion holdings by 830,000 ounces, equivalent to around 25.8 metric tons, according to official data released Saturday. This streak of accumulation began two years ago and shows no signs of slowing down, particularly as gold prices have declined sharply.
The precious metal ended October nearly 7% lower, dipping below the $4,000-an-ounce support level. The central bank has seized on this price drop, accelerating purchases in recent months. Over the first 10 months of the year, China’s gold reserves have grown by approximately 129 metric tons, underscoring its strategic focus on the asset amid global economic uncertainties.
The consistent buying spree highlights China’s long-term strategy to bolster its gold reserves, potentially as a hedge against financial instability or currency fluctuations. Analysts will be watching closely to see if this trend continues, especially as gold prices remain under pressure.