How much gold did China buy in total? 10-month balance sheet has been announced

The Central Bank of China continued to increase its reserves despite the sharp decline in gold prices. The bank bought approximately 830 thousand ounces, or 25.8 tons, of gold in October, extending its uninterrupted buying streak to 24 months.

According to official data, China's total gold purchases in the first 10 months of 2026 reached approximately 129 tons. During the same period, sharp fluctuations were observed in global gold prices.

While gold lost approximately 7 percent in value in October, the ounce price fell to its lowest level in a year and completed the month below 4 thousand dollars. This was gold's worst October performance since the global financial crisis.

According to World Gold Council (WGC) data, the Central Bank of China became the largest gold buyer among central banks that publicly announced their purchases in the third quarter.

Net gold purchases by central banks around the world increased from 296.3 tons in the second quarter to 321.2 tons in the July-September period. Thus, the highest quarterly purchase level was reached since the last quarter of 2024.

In the first quarter, when prices reached record levels, net gold purchases by central banks remained at 57.7 tons.

The reserve accumulation of the Central Bank of China also supported the demand of individual investors in the country. It was stated that households bought gold at levels around 4 thousand dollars per ounce in October, with the expectation that prices would be supported in the long term.

Reuters Asia Commodity and Energy Columnist Clyde Russell evaluated that there is a divergence between gold's short-term price movements and its long-term outlook.

According to Russell, gold is trying to establish a base around $4,000 per ounce amid conflicting market influences.

After breaking a record at $5,594.82 on January 29, gold fell to $4,097.99 on March 23 due to profit sales.

Prices, which recovered somewhat after the US midterm elections, remained more than 20 percent below the levels at the beginning of the Iran war at the end of February.

Conflicts increased energy costs, strengthening inflation pressures and expectations for tighter monetary policy.

High interest rates put pressure on prices by increasing the opportunity cost of holding gold, which does not provide interest income.

Russell stated that the decline in oil prices due to expectations that the conflict in Iran may end may change interest rate expectations. He stated that these developments could move market expectations to a more neutral level, or even towards interest rate cuts in 2027.

Russell stated that one of the short-term risks is the weakness that may be experienced in stock markets as question marks regarding artificial intelligence investments increase.

Stating that a possible sharp decline in stock markets may lead investors to sell their other assets due to the need for cash, Russell noted that gold may also be affected by these sales.

However, it is evaluated that if the weakness in the stock markets spreads to the real economy, interest rate cut expectations may strengthen in the medium term and this may support gold.

According to Russell, concerns about the long-term financial outlook of the United States support the tendency of central banks to diversify their reserves.

Due to the pressure created by the US budget deficit and public debt, gold continues to be an alternative reserve tool for central banks.

While it is stated that the recent decline in gold prices below 4 thousand dollars may increase the purchases of central banks in the last quarter of the year, it is emphasized that prices are open to sharp movements in both directions in the short term.

Demand for investment funds also continued. According to WGC data, there was a net inflow of 19 tons into gold exchange traded funds (ETF) in October. While there was an outflow of 47.3 tons in the second quarter, the funds recorded an inflow of 211.2 tons in the third quarter.

It is considered that the decline in prices in China and India, which account for approximately two-thirds of global jewelry demand, may support demand.

According to WGC data, India's gold demand for jewelery purposes reached its highest level since the last quarter of 2025 with 99.9 tons in the third quarter.

In China, jewelry demand increased from 55.7 tons in the second quarter to 71.9 tons in the third quarter.