China's central bank extends gold buying to 24 straight months

what happened

According to TradingView, the People's Bank of China raised its gold reserves by 830,000 ounces in October, roughly 25.8 metric tons, based on official figures published on Saturday. It marks the 24th straight month of purchases, so the buying run now spans two years, even though bullion lost nearly 7% over the month and closed below the $4,000-an-ounce support level.

The pace of accumulation picked up as prices slid, bringing the first ten months of the year to about 129 metric tons. World Gold Council figures show the PBOC was the most active central bank among those disclosing purchases in the July to September quarter, when official-sector net buying reached 321 tons.

Gold hit a one-year low last month and posted its steepest October drop since 2008. It has rebounded since the US midterm elections this week, yet it is still more than a fifth below its level when the Iran war began in late February.

why it matters

Central-bank demand remains one of the few steady props under the gold market. Higher energy costs have fed inflation and tightened monetary policy, which weighs on bullion because it pays no yield. Chinese households who bought near $4,000 also watch PBOC moves as a signal for long-term prices.

market impact

Gold: PBOC buying supports demand, while tighter monetary policy caps the rally.

• ↔Gold mixed — central-bank buying supports prices, but tighter policy weighs on the metal

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