Gold move by the Central Bank of China: It purchased 25.8 tons in October

Although gold prices in global markets decreased significantly in October, the Central Bank of China did not give up its policy of increasing its reserves. The bank purchased 25.8 tons of gold in October, surpassing the purchase it made in the previous month. Latest data revealed that China is continuing its gold accumulation strategy with determination.

CENTRAL BANK OF CHINA PURCHASED 25.8 TONS OF GOLD IN OCTOBER

According to data published on November 7, the Central Bank of China added 830 thousand ounces, or approximately 25.8 tons, to its gold reserves in October. Thus, the bank's total gold reserve increased from 77.47 million ounces to 78.30 million ounces.

With the latest increase, it was calculated that China's physical gold reserves reached approximately 2 thousand 435 tons.

24-MONTH UNINTERRUPTED SERIES IN GOLD PURCHASES

One of the remarkable developments in China's gold demand was the continuity of purchases. The Central Bank of China, which has been purchasing gold every month since November 2024, extended the uninterrupted purchasing period to 24 months with the October data.

The fact that purchases continued during periods when gold prices rose as well as during declines indicated that the bank maintained its long-term reserve policy.

PURCHASE AMOUNT IN OCTOBER LEFT SEPTEMBER BEHIND

The last two months' transactions of the Central Bank of China showed that there was an increase in the gold purchasing rate. The bank bought approximately 23 tons of gold in September and increased this amount to 25.8 tons in October.

Thus, the monthly gold addition to reserves increased compared to the previous month.

129 TONS OF GOLD ADDED IN THE FIRST 10 MONTHS OF 2026

China's tendency to expand its gold reserves continued throughout the year. The Central Bank, which purchased approximately 103 tons of gold in the first nine months of 2026, increased its total purchase for the first 10 months to approximately 129 tons with the addition in October.

Figures announced two months before the end of the year showed that China's strategy to increase its gold reserves continues.

GOLD PRICES DECREASED HARD IN OCTOBER

A different outlook emerged in the international gold market during the period when China increased its purchases. In October, the loss in gold futures reached approximately 6.9 percent.

Prices completed the month below 4 thousand dollars, causing gold to exhibit one of its worst October performances since 2008.

GOLD DEMAND OF CENTRAL BANKS REACHED 321 TONS

China was not the only country that increased its gold reserves. According to the report published by the World Gold Council on November 3, central banks purchased a total of 321 tons of net gold in the third quarter of 2026.

China ranked first among publicly disclosed central bank transactions with approximately 63 tons of purchases reported in the same period.

DEMAND FOR PHYSICAL GOLD INVESTMENT INCREASED IN CHINA

Gold demand in China is not limited to the central bank's reserve purchases. In the third quarter, investment demand for bullion and coin gold increased by 7 percent compared to the same period last year, reaching approximately 79 tons.

This development showed that Chinese investors maintained their interest in physical gold at a time when demand for the same products on a global scale decreased by 19 percent.

THERE WAS A DECLINE IN THE DEMAND FOR GOLD JEWELERY

In China, where gold purchases for investment purposes increased, jewelery demand decreased in the same period. In the third quarter, gold jewelry consumption decreased by 22 percent on an annual basis, falling to approximately 66 tons.

Thus, the difference between gold demand for investment purposes and jewelry consumption in the Chinese market has become more evident.

EYES ON CHINA'S NEW RESERVE DATA

China's gold reserve data for November is expected to be announced at the beginning of December. Market actors will closely monitor whether the Central Bank will continue its purchase series that has been going on for 24 months.

In addition, the interest rate policy of the US Federal Reserve, the course of the dollar in global markets and the gold demand of other central banks will also have an impact on the direction of prices.

Although the strong gold demand of central banks is among the factors that can support the market, this does not mean that there will be a definite increase in prices.