The People’s Bank of China increased its gold reserves in October for the 24th month in a row, extending the uninterrupted buying streak to exactly two years. Official data shows the central bank’s holdings rose by 830,000 troy ounces (about 25.8 metric tons) in the month, bringing cumulative purchases to roughly 129 tonnes in the first ten months of 2026. The pace of accumulation accelerated amid a sharp correction in global markets: gold tumbled almost 7% in October, dipping below the psychological $4,000/oz mark to a one‑year low — the weakest October performance since the crisis year of 2008.
Sustained demand from regulators worldwide was a key support factor during a period of weakness among other investment categories. According to the World Gold Council (WGC), China’s central bank was the largest buyer among reporting authorities in Q3, while total net purchases by central banks worldwide reached 321 tonnes from July through September — the highest quarterly figure since late 2024. Beijing’s reserve accumulation also spurred retail demand at home: Chinese households actively bought the precious metal at about $4,000/oz, betting on a long‑term market turnaround.
Despite a partial rebound in prices after the US midterm elections this week, spot gold remains more than 20% below late‑February levels recorded before the outbreak of the Iran conflict. The war‑driven surge in energy prices has boosted global inflationary pressures and forced many central banks to tighten monetary policies. Higher interest rates traditionally weigh on non‑yielding assets like gold, but China’s steady strategy highlights the contrast between short‑term market volatility and long‑term sovereign‑reserve diversification.
