China Buys Gold for a 24th Straight Month as Reserves Hit 78.3 Million Ounces

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China’s central bank bought more gold in October, taking its gold reserves to 78.3 million ounces. It was the 24th month in a row that the bank added gold, and the biggest monthly purchase since it restarted buying in November 2024.

What happened

Data released by the People’s Bank of China on Saturday, November 7, showed gold reserves of 78.30 million fine troy ounces at the end of October, up from 77.47 million ounces a month earlier. That is an increase of 830,000 ounces, or about 25.8 tonnes, in a single month.

The buying continued even though gold prices fell sharply in October. Gold dropped nearly 7 percent during the month and ended below $4,000 an ounce. Because prices fell, the value of China’s gold reserves dropped to $306.41 billion at the end of October, down from $323.52 billion at the end of September, even though the bank held more gold.

Bloomberg reported that China sped up its gold buying in recent months as prices weakened, with purchases in the first 10 months of 2026 totalling about 129 tonnes. The October purchase was the largest monthly addition since the bank resumed gold buying in November 2024.

China’s total foreign exchange reserves stood at $3.405 trillion at the end of October, up about $4.9 billion from the end of September, according to the same release.

Why it matters for beginners

Central banks hold gold as part of their reserves, the savings a country keeps for difficult times. Buying gold spreads risk, so a country does not depend only on one currency, such as the US dollar.

Steady buying by central banks can also support the gold price. Gold fell below $4,000 on October 30 and hit a one year low, but it then recovered and posted its best week since August, with spot gold around $4,077 by November 6. Central banks bought gold at the fastest pace since 2024 in the third quarter of 2026, so China’s buying is part of a wider trend, not a one off move.

For beginners, the lesson is simple. Big buyers often keep buying through price falls when they are planning for the long term. That does not mean the gold price will rise, and it is not a reason to buy gold yourself. It is one signal among many that helps explain where demand for gold is coming from.

What to watch next

Watch the next monthly update from the People’s Bank of China in early December to see whether the buying streak reaches a 25th month. Watch too whether other central banks keep adding gold, and whether the gold price holds above $4,000 after its sharp fall and rebound. The US Federal Reserve meets next on December 8 and 9, and its decision on interest rates often moves gold, the dollar, and bond yields together.

FAQ

How much gold does China hold now?

China held 78.3 million fine troy ounces of gold at the end of October 2026, about 2,435 tonnes. That is up from 77.47 million ounces at the end of September.

Why would a central bank buy gold when prices are falling?

Central banks buy gold for the long term, to diversify their reserves and reduce reliance on any single currency. A lower price can be a chance to add more gold for the same amount of money, and steady official buying can help support the market.

Does China’s gold buying mean gold prices will go up?

No. Central bank buying is only one factor in the gold market. Interest rates, the strength of the dollar, inflation, and investor demand all move the price too, and none of them can be predicted with certainty.

How does this fit with what other central banks are doing?

Central banks around the world bought 321 tonnes of gold in the third quarter of 2026, the fastest pace since late 2024, according to the World Gold Council. China was the largest buyer in that quarter, so its October purchase continues a trend shared by many central banks.

Sources

The People’s Bank of China, official reserve data released November 7, 2026, as reported by The Hindu BusinessLine in China buys gold for 24th straight month, reserves rise to 78.3 million ounces. BusinessToday reported the same figures, citing Bloomberg, in China Extends Gold-Buying Streak Despite Price Decline.

This article is for general information and education only. It is not legal or financial advice.