The People’s Bank of China (PBOC) added 830,000 troy ounces of gold to its reserves in October, about 25.8 tonnes, extending its buying streak to 24 consecutive months. Official data released on Saturday showed the increase.
Gold lost about 7 percent in October and closed the month below the $4,000 an ounce support level. By our market data, gold stood at $4,070.93 an ounce as of 18:14 GMT on 7 November.
Central bank demand holds up
World Gold Council data showed the PBOC was the largest publicly disclosed buyer among global central banks in the third quarter. Net central bank purchases reached 321 tonnes in July-September, the highest since the fourth quarter of 2024.
The PBOC has accumulated about 129 tonnes in the first 10 months of the year. Central bank buying, the article argues, continues to support prices in an otherwise subdued market.
Retail buyers follow the same view
Many Chinese citizens bought gold in October at prices around $4,000 an ounce. They expected central bank buying to support prices over the long term, even as the market weakened.
Related: Central bank gold buying rose 42% in Q3 as jewellery demand fell
Source: People's Bank of China | Data: Swissquote
