China bought about 25.8 metric tons of gold in October, extending its buying streak to 24 months as bullion fell nearly 7% and closed below $4,000 an ounce.
Bloomberg’s Yihui Xie reported November 6, citing official reserve data, that the People’s Bank of China added 830,000 ounces during the month. The bank has increased purchases as prices weakened in recent months, taking additions for January through October to roughly 129 metric tons.
Gold’s Worst October Since 2008
Bullion touched a one-year low during October and posted its largest decline for the month since the 2008 financial crisis. At the time of Bloomberg’s report, prices had recovered following the U.S. midterm elections but remained more than 20% below their level when the Iran war began in late February.
Higher energy prices have fueled inflation and led to tighter monetary policy. Higher interest rates increase the appeal of interest-bearing assets relative to gold, which pays no income.
China Leads Disclosed Central-Bank Purchases
The PBOC was the largest disclosed central-bank gold buyer in the third quarter, according to World Gold Council figures cited by Bloomberg. Central banks worldwide bought a net 321 metric tons between July and September, the largest quarterly total since the fourth quarter of 2024.
Chinese households also bought gold near $4,000 an ounce in October. Bloomberg reported that many expected the central bank’s continued purchases to support prices over the long term.
