China extends 24‑month gold buying run

China’s central bank extended its uninterrupted gold buying run to 24 months in October 2026, even as international prices fell sharply. The People’s Bank of China increased its bullion reserves by 830,000 ounces in October, equivalent to about 25.8 metric tons, pushing total holdings to 78.3 million ounces at the end of the month. The central bank has added to its gold reserves every month since it began this accumulation phase in November 2024.

From January through October 2026, the central bank’s gold purchases amounted to roughly 129 tons. This sustained buying has continued through a period of pronounced volatility in global precious metals markets this year.

China’s latest additions came as gold prices recorded a weak October performance. International prices declined almost 7% over the month, sliding below $4,000 per ounce and reaching their lowest level in a year. On an October basis, it was the steepest drop in gold prices since 2008, and prices remained more than 20% below levels seen before the U.S.-Iran war that began in late February.

Despite the downturn, official-sector demand has helped support the market. Continued buying by central banks has acted as a stabilizing factor in what has otherwise been a subdued environment for gold.

The World Gold Council said the People’s Bank of China was the largest publicly disclosed central-bank buyer of gold in the third quarter of 2026. Central banks worldwide reported net purchases of 321 tons during that quarter, the strongest quarterly total since the final three months of 2024.

China’s sustained purchases underline the scale of its participation in official-sector gold accumulation.

The pattern of central-bank accumulation has also influenced behavior in China’s domestic market. Chinese retail investors bought gold around the $4,000-per-ounce level in October, reflecting expectations that ongoing purchases by the central bank would underpin prices over the longer term.

The combination of a two-year official buying streak, sizeable year-to-date purchases, and heavy global central-bank demand contrasts with recent price weakness. China is continuing to prioritize gold as part of its reserve mix despite short-term market pressures.