China's Central Bank Extends Record-Breaking Gold Buying Streak
The People's Bank of China adds 26 tons of gold, nearing global reserve rankings.
1Unprecedented Buying Streak
The People's Bank of China has maintained an uninterrupted monthly gold buying spree for two full years. This represents the longest continuous accumulation period since data collection began in 2002. Recent October data shows an addition of nearly 26 tons, marking the largest monthly increase within the current cycle of acquisitions.
2Rapid Reserve Expansion
According to the State Administration of Foreign Exchange, China added 830,000 troy ounces of gold in October. This brings the total official holdings to a record 78.3 million troy ounces, or approximately 2,435.57 tons. This consistent growth reflects a strategic shift in how the nation manages its massive foreign exchange reserves.
3Climbing Global Rankings
China is on the verge of securing the third-largest gold reserves globally. Current holdings are less than 1.5 tons away from surpassing the Bank of France. Having already overtaken the Central Bank of Russia earlier this year, China is now positioned to surpass both France and Italy in total gold tonnage.
4Market Valuation Impact
Despite the volume increase, the total value of China's gold reserves dropped to 306.4 billion dollars at the end of October. This decline was driven by a global 7 percent price correction in gold during the month. Gold currently accounts for 8.11 percent of China's total foreign exchange reserves of 3.77 trillion dollars.
5Competitive Global Landscape
China and Poland’s National Bank (NBP) are currently the primary contenders for the title of the world's largest gold buyer this year. While the NBP has acquired nearly 150 tons, China has added 129 tons in 2026. The race remains tight as the NBP approaches its stated target of 700 tons total.
6Strategic Economic Rationale
Market participants suggest these purchases aim to optimize official reserve structures and reduce reliance on dollar-denominated assets. By increasing gold holdings, China seeks to provide a long-term buffer for the yuan's stability. Furthermore, the bank has reportedly begun depositing more gold in Hong Kong to bolster its status as a trading hub.
7Global Central Bank Trends
A survey of 101 central banks indicates a broader trend of increasing gold investments compared to the previous year. Approximately 40 percent of these institutions are actively considering further increases in their bullion holdings. Respondents identified geopolitics as the primary risk factor influencing their reserve management decisions throughout the 2026 fiscal year.
8Future Market Implications
The sustained accumulation by China signals a long-term commitment to de-dollarization and reserve diversification. As the NBP nears its target and potentially slows its buying, China’s persistent strategy will likely remain a dominant force in global gold markets. Observers should monitor whether this trend continues to reshape international reserve asset compositions.
Original article: Bankier.pl — China's Central Bank Extends Record-Breaking Gold Buying Streak