China's central bank has extended its gold-buying streak to a 24th consecutive month, with October purchases hitting the highest level since the restart of bullion accumulation in November 2024.

According to official data released on November 7, China's gold reserves stood at 78.30 million ounces at the end of October, an increase of 830,000 ounces from the previous month. This marks the 24th straight month of increases and represents the largest monthly addition since the central bank resumed gold purchases in November 2024.

Purchases Hit a New High

Gold prices have seen heightened volatility this year. In October, both spot gold and gold futures closed lower, falling 6.79% and 7.21% respectively for the month — their second consecutive monthly decline. Against this backdrop, the central bank significantly boosted its holdings by 830,000 ounces.

Wang Qing, chief macroeconomic analyst at Dongfang Jincheng, offered two explanations. On one hand, the new US administration's arrival has brought fresh changes to the global political and economic landscape, meaning that despite elevated gold prices, the need to increase gold holdings has risen from the perspective of optimizing international reserve structure. China's current gold reserve ratio remains notably low, leaving substantial room for further accumulation. On the other hand, gold is a widely accepted final means of payment globally, and central bank purchases can enhance sovereign currency credit and create favorable conditions for the prudent advancement of RMB internationalization. "Taking all factors into account, continued central bank gold buying remains the general direction," Wang said.

Global central banks have also maintained their gold-buying pace. The World Gold Council's latest Q3 2026 Global Gold Demand Trends report showed that central banks and other official institutions added a net 321 tonnes to their gold reserves in the third quarter, up 42% year-on-year and marking the highest quarterly total since Q4 2024. From the start of 2026 through the end of the third quarter, global central banks accumulated 675 tonnes of gold, a 6% increase compared with the same period last year.

Louise Street, senior market analyst at the World Gold Council, further noted that overall global gold demand in the third quarter showed a divergent pattern. Geopolitical risks and concerns about fiscal sustainability drove institutional funds heavily back into gold ETFs, while individual investors largely stayed on the sidelines amid uncertainty over gold price movements. Official institutions continued large-scale gold purchases, with central bank buying remaining a key pillar of gold demand.

Looking ahead to the gold market through year-end, Street believes bullish and bearish factors are roughly balanced. Although rising interest rates and divergent inflation expectations may weigh on gold prices, intertwined geopolitical risks and financial market pressures could push market participants toward gold in search of stability.

Foreign Exchange Reserves Rise Month-on-Month

On the foreign exchange reserves front, China's forex reserves totaled US$3.4052 trillion at the end of October 2026, up US$4.9 billion or 0.14% from the end of September. The State Administration of Foreign Exchange stated that in October 2026, influenced by global macroeconomic data as well as monetary policies and expectations of major economies, the US dollar index rose while major global financial asset prices showed mixed performance. The combined effects of currency translation and asset price changes led to the increase in foreign exchange reserves for the month. China's economy continues to operate generally smoothly, with new achievements in high-quality development providing support for keeping foreign exchange reserves basically stable.