China’s central bank has continued its gold-buying spree, marking two years of consecutive purchases as gold prices dipped nearly 7% in October. The People’s Bank of China added 830,000 ounces, or about 25.8 metric tons, to its reserves last month, pushing its total acquisitions in the first 10 months of the year to around 129 metric tons. This extends the bank’s buying streak to 24 months, with October’s additions coming as gold prices fell below the $4,000-an-ounce support level.
The central bank has ramped up its gold purchases in recent months, taking advantage of the slump in prices. The October increase follows a pattern of steady accumulation, reflecting China’s strategic focus on bolstering its gold reserves amid global economic uncertainties. The data, released Saturday, underscores the country’s long-term commitment to diversifying its assets with the precious metal.
Gold’s decline below $4,000 an ounce appears to have created a buying opportunity for the People’s Bank of China. The bank’s actions suggest confidence in gold as a hedge against inflation and currency risks, even as other central banks adjust their reserve strategies. The continued purchases also highlight China’s role as a major player in the global gold market.