Eco
The central bank in China increased its gold reserves in October, extending a continuous purchasing streak that has lasted for two years, despite a roughly 7% decline in the precious metal's price, which closed the month below the key support level of $4000 per ounce. The People's Bank of China added 830,000 ounces of gold in October, equivalent to about 25.8 tons, according to official data released on Saturday, marking the 24th consecutive month of increases. In recent months, the Chinese central bank intensified its gold purchases amid falling prices, with total additions to its reserves reaching approximately 129 tons during the first ten months of the year. The Chinese central bank topped the list of the largest gold buyers among global central banks in the third quarter, according to the World Gold Council. Net purchases by central banks reached 321 tons from July to September, the highest level since the last quarter of 2024. These purchases remain a fundamental pillar supporting gold prices in a market experiencing sluggish activity. Gold hit its lowest level of the year last month, recording its largest October loss since the 2008 global financial crisis. Despite a price rebound following the recent U.S. midterm elections, the precious metal remains down more than 20% since the outbreak of the Iran conflict in late February. Rising energy prices have fueled inflation, leading to tighter monetary policy, which typically exerts pressure on non-yielding assets like gold. The holdings of the People's Bank of China influence purchasing decisions among Chinese households, who showed strong interest in buying gold at prices near $4000 per ounce during October, amid expectations that central bank purchases will help support prices over the long term.
