China Adds Nearly 26 Tonnes of Gold as Buying Streak Reaches Two Years

China increased its reported gold reserves by approximately 25.8 tonnes in October, extending an uninterrupted run of monthly additions to two years. The new disclosure shows continued official accumulation, but it does not reveal the prices paid or establish that the central bank deliberately bought at the month’s market lows.

China’s official reserve asset figures put gold holdings at 78.30 million troy ounces at the end of October, compared with 77.47 million a month earlier. The increase of 830,000 ounces converts to approximately 25.8 metric tonnes, using 31.1035 grams per troy ounce.

That takes total reported holdings to roughly 2,435 tonnes. The calculation measures the quantity of gold held, rather than the financial value assigned to those reserves.

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Monthly additions have accelerated

The Paper’s report on the reserve disclosure lists October’s increase at 830,000 ounces, following 740,000 in September and 650,000 in August. The sequence shows a rising pace of reported additions over those months.

September’s increase was equivalent to approximately 23 tonnes. October therefore added about 2.8 tonnes more. These are calculations from rounded monthly holdings, rather than a detailed record of individual trades.

The Paper dates the current accumulation streak to November 2024. October 2026 marks the 24th consecutive monthly increase. People’s Daily Online also reported the two-year streak, citing the reserve data released on 7 November.

A continuing increase in reported holdings is useful evidence of official demand. It cannot show whether purchases were spread evenly through a month or concentrated on particular trading days.

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More gold does not always mean a higher reserve value

The latest figures also illustrate a distinction that matters when reading central-bank announcements. China held more ounces at the end of October, yet the dollar value of its gold reserves declined.

The official table shows a valuation of approximately $306.4 billion in October, compared with $323.5 billion in September. A central bank can add metal while the market value of its existing holdings falls enough to outweigh the new quantity.

Business Today’s coverage placed the additions against an October gold-price decline of nearly 7%. Buying during a falling month does not, by itself, demonstrate that China bought the dip. Monthly reserve balances provide neither execution dates nor transaction prices.

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Why a central bank may keep accumulating

Reserve managers can hold gold to diversify assets and reduce reliance on claims issued by other governments or financial institutions. Such objectives may remain relevant through periods of price volatility.

People’s Daily Online cited the World Gold Council’s view that continued Chinese purchases can strengthen reserve diversification and resilience. That provides strategic context, rather than a disclosed explanation for each October transaction.

Our guide to why central banks buy gold explains these reserve-management considerations. They differ from the decisions facing an individual who may need to sell soon, pay retail premiums or preserve cash for other commitments.

The reserve announcement also says little about Chinese households’ purchases. Official gold accumulation should be kept separate from jewellery sales, private bar buying and investment-fund flows. These groups can respond differently to the same price conditions.

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Official buying cannot guarantee a price recovery

Sustained central-bank demand adds an important buyer to the market. It does not prevent prices from declining when other investors reduce exposure or when financial conditions become less favourable for bullion.

Gold pays no interest. Higher returns on cash and bonds can increase the income investors give up by holding it, as our guide to how interest rates affect gold prices explains. Currency movements and changes in investment positioning can also outweigh official purchases over shorter periods.

For buyers following current gold prices, China’s disclosure is therefore evidence about one source of demand, rather than a forecast or a signal that a market bottom has been established.

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What to watch next

The next monthly reserve release will show whether the streak continues and whether the pace changes again. Further disclosures would be needed to establish a new purchase target or provide more detail about China’s intentions.

October’s increase extends a consistent pattern of reported accumulation. Its significance lies in the persistence and growing scale of those additions, while its limits remain clear: the figures show how holdings changed, not exactly when China bought or where gold prices will go next.