China buys gold for a 24th month: 25.8 tonnes added in October

What was published. On November 7 China's State Administration of Foreign Exchange (SAFE) said the country's FX reserves stood at $3.4052 trillion at the end of October. That is $4.9 billion, or 0.14%, more than at the end of September. SAFE put the rise down to currency translation and changes in asset prices: the dollar rose in October, and major financial assets moved in different directions.

Gold. The same day the People's Bank of China showed it added 830,000 troy ounces of gold, about 25.8 tonnes. According to BigGo Finance, holdings rose from 77.47 to 78.30 million ounces. This is the 24th month of buying in a row, exactly two years. From January to October 2026 the bank bought about 129 tonnes.

Why it stands out. Gold fell almost 7% in October and ended the month below $4,000 an ounce after touching a one-year low. Investing.com calls it the metal's worst October since 2008. China has sped up its buying in recent months. According to the World Gold Council, it was the largest publicly reported central bank buyer in the third quarter. Central banks worldwide made net purchases of 321 tonnes in July to September, the strongest quarter since late 2024.

What weighs on the price. Gold recovered a little this week after the US midterm elections, but according to Investing.com it is still more than 20% below its late February levels. Expensive energy pushes inflation up, which pushes central banks toward tighter policy. High rates usually hurt gold because it pays no interest.

What we don't know. China does not explain why it is buying now or how much more it plans to buy. The official data show only the month-end total, not the purchase price.

Confirmed facts

• At the end of October 2026 China's FX reserves stood at $3.4052 trillion, up $4.9 billion, or 0.14%, from the end of September.^[1]
• SAFE attributes the rise to currency translation and asset price changes as the dollar index rose.^[1]
• The People's Bank of China added 830,000 troy ounces of gold in October, about 25.8 tonnes.^[2][3]
• It is the 24th consecutive month of gold purchases.^[2][3][4]
• China's gold holdings rose from 77.47 to 78.30 million ounces.^[4]
• In the first 10 months of 2026 the bank bought about 129 tonnes of gold.^[2]
• Gold fell almost 7% in October and closed the month below $4,000 an ounce, its worst October since 2008.^[2]
• According to the World Gold Council, China was the largest publicly reported central bank buyer in Q3, and central banks made net purchases of 321 tonnes.^[2]

Implications

• ConfirmedThe People's Bank of China keeps buying gold even as the price falls.
• Our readingSteady central bank demand may soften falls in the gold price, but it does not cancel the pressure from high rates. This is our conclusion.
• Our readingOctober's rise in FX reserves is largely about revaluation, not only new money coming in. This is our reading of SAFE's wording.

Still unknown

• How much more gold China plans to buy
• At what price the October gold was bought
• Whether other central banks keep buying in the fourth quarter

Who it affects

China, Asia, Global. Anyone who holds or watches gold, and anyone following the yuan and China's reserves

Sources

1. State Administration of Foreign Exchange (SAFE): 国家外汇管理局公布2026年10月末外汇储备规模数据 November 7, 2026 · official
2. Investing.com: China extends gold buying streak to 24 months as prices slump below $4,000 November 7, 2026 · media
3. Bloomberg: China Extends Gold-Buying Streak to Two Years as Prices Drop November 7, 2026 · media
4. BigGo Finance: China's Central Bank Extends Gold-Buying Streak to 24 Months, Adding 830,000 Ounces in October November 7, 2026 · media