China Central Bank's gold purchases are not slowing down
PBOC increased its gold stock by 830 thousand ounces in October; The total accumulation in the first 10 months of the year reached approximately 129 tons.
Quick Look
- The People's Bank of China (PBOC) increased its reserve accumulation series to 24 months by increasing its gold stock to 830 thousand ounces (approximately 25.8 tons) in October.
- The total accumulation in the first 10 months of the year reached approximately 129 tons.
- According to World Gold Council data, PBOC was the largest announced buyer among global central banks in the third quarter, with central bank purchases rising to a net 321 tonnes in the July-September period.
AI-generated summary
Why It Matters
The People's Bank of China continued to add gold to its reserves as gold prices lost nearly 7% in October and remained below the $4,000 per ounce support threshold. According to World Gold Council data, central bank purchases amounted to a net 321 tons in the July-September period, and this figure was the highest level seen since the last quarter of 2024.
The People's Bank of China (PBOC) continued to add gold to its reserves and extended its purchase streak to two years, as the precious metal lost nearly 7% of its value in October, finishing the month below the support threshold of $4,000 per ounce.
According to official data announced on Saturday, gold bullion stocks within PBOC increased by 830 thousand ounces (about 25.8 tons) in October. This move indicated that reserves were accumulated for the 24th consecutive month. While the central bank accelerated its purchases, especially in recent months when gold prices decreased, the total accumulation in the first 10 months of the year reached approximately 129 tons.
World Gold Council (WGC) data revealed that PBOC was the largest publicly disclosed buyer among global central banks in the third quarter.
According to WGC data, central bank purchases amounted to a net 321 tons in the July-September period, and this figure was the highest level seen since the last quarter of 2024. These savings of banks continue to be a fundamental support element for gold prices in an otherwise dull market.
Open Questions
- It is not clearly stated how long PBOC's gold accumulation streak will continue.
- No definitive prediction has been made about the future movement of gold prices.
- No information was given about how other central banks would react to these purchases.
