China's central bank raised its gold holdings to 78.3 million ounces in October from 77.47 million, its 24th straight monthly increase. The reserves' value still fell to $306.41 billion because gold's price dropped during the month.
At a glance
- The October addition equals about 830,000 ounces, taking purchases this year to about 129 tonnes.
- A year earlier China held 74.09 million ounces, so holdings have grown by about 4.2 million ounces.
- Gold ended October at $3,913 an ounce, about 25% below January's record, the World Gold Council said.
Background
Central banks report the gold they hold as part of their foreign exchange reserves. The People's Bank of China publishes its total each month, usually in fine troy ounces. One tonne equals about 32,150 troy ounces. China's buying is watched closely because the World Gold Council named it the largest central bank buyer in the third quarter, when central banks worldwide bought 321 tonnes.
What happened
The People's Bank of China said on Saturday that its gold holdings reached 78.3 million fine troy ounces at the end of October, up from 77.47 million a month earlier, Reuters reported.
The increase of about 830,000 ounces equals roughly 25.8 tonnes, and it extended the run of monthly additions to 24, BigGo Finance reported from the official data.
Purchases from January to October total about 129 tonnes. The World Gold Council put China's third-quarter buying at 63 tonnes.
Why the value fell while the ounces rose
The dollar value of the reserves dropped to $306.41 billion from $323.52 billion at the end of September.
That fall came from the price. The World Gold Council said gold closed October at $3,913 an ounce, down 6.3% in the month, so the lower price outweighed the extra ounces.
The October addition was also far larger than a year ago, when holdings stood at 74.09 million ounces after a rise of about 30,000 ounces in the month.
What it means
China kept buying through a month when prices fell, which supports the view of official demand as a steady base under the market. Goldman Sachs made the same point this week, saying central bank demand remains supportive even as it lowered its price forecasts.
China's foreign exchange reserves stood at about $3.41 trillion at the end of October, against $306.41 billion of gold. Indian gold rates follow the global price, so steady official buying helps, but the dollar and the Federal Reserve still set the near-term direction.
Our read
Outlook: bullish. A 25.8-tonne monthly purchase during a price fall shows official demand remains firm, though Fed rate-hike bets are still pressing on gold.
What to watch
- China's next monthly reserve figure, due in early December.
- Whether monthly additions stay near October's size or return to smaller amounts.
- The World Gold Council's next monthly central bank data.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-11-10.
Detailed analysis
Timeline
- 2026-11-07: The People's Bank of China reports gold holdings of 78.3 million ounces for the end of October.
Demand Drivers
Official buying continued through a month when gold fell 6.3%, according to World Gold Council figures.
Interest Rates
Bets on a Fed rate rise in December remain the main pressure on prices, which limits the effect of official buying.
Central Banks
China added about 25.8 tonnes in October, and about 129 tonnes from January to October.
What could lift prices
- China added about 25.8 tonnes in a single month while prices fell.
- Central banks bought 321 tonnes in the third quarter, the World Gold Council said.
What could weigh on prices
- Traders see a high chance of a Fed rate rise in December, which raises the cost of holding gold.
- Goldman Sachs lowered its gold price forecasts for 2026 and 2027 this week.
Country impact
| Country | Impact | Reason |
|---|---|---|
| China | High | The central bank raised gold holdings for a 24th month. |
| India | Medium | Official demand supports global prices, which feed into Indian gold rates. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Investment and Wealth Management | Positive | Steady official buying supports the case for gold as a long-term reserve asset. |
Who gains, who loses
- Gold miners: Steady official demand helps to support the metal they sell.
- Short sellers of gold: Large official purchases during price falls can limit how far prices drop.
Other ways this could play out
- If China keeps adding at this pace, official demand could cushion further price falls.
- If monthly additions shrink again, investors may treat October as a one-off purchase on the dip.
Price risks
- A Fed rate rise in December could outweigh official demand in the short term.
- China's monthly purchases can change without notice.
Technical view
Price is mixed relative to its 20-period and 50-period moving averages, showing no clear trend alignment.
Computed from metalscost.com's own stored price history.
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