China’s central bank continued its gold-buying streak for a 24th consecutive month, adding 25.8 metric tons in October. This extends the People’s Bank of China’s (PBOC) purchasing spree to two years, even as gold prices dropped nearly 7% during the month, falling below the $4,000-an-ounce support level.
The PBOC’s October purchase amounted to 830,000 ounces, according to official data released Saturday. The central bank has significantly increased its gold acquisitions in recent months, with total additions in the first 10 months of the year reaching around 129 metric tons.
The PBOC was the largest disclosed buyer among global central banks in the third quarter, with cumulative official-sector purchases reported by the World Gold Council (WGC) at 321 tons. This is the highest level since the final quarter of 2024 and has provided key support to gold prices in an otherwise sluggish market.
Gold prices hit a one-year low last month and recorded their biggest October decline since the 2008 global financial crisis. While prices have rebounded slightly following the US midterm elections this week, they remain down by more than a fifth since the Iran war began in late February. Higher energy prices have contributed to inflation and tighter monetary policy, which typically weighs on non-yielding bullion.
The PBOC’s gold holdings influence buying patterns among Chinese households. Many individuals purchased gold at around $4,000 an ounce in October, anticipating that central-bank purchases would help stabilize prices over the long term.