The People’s Bank of China (PBOC), the country’s central bank, raised its official gold reserves in October, increasing its holdings to 78.30 million troy ounces. This latest addition of 830,000 ounces, equivalent to 25.8 metric tonnes, extends China’s continuous streak of monthly gold purchases to 24 months amid ongoing volatility across global precious metals markets.
China’s gold reserves expand for 24th consecutive month
According to figures released by China’s State Administration of Foreign Exchange (SAFE), the country’s gold holdings grew from 77.47 million ounces in September to 78.30 million ounces in October. This lift extends a persistent accumulation strategy that began in late 2024. In September, the PBOC increased its reserves by 23 tonnes—a move that the World Gold Council (WGC) highlighted as the central bank’s largest monthly purchase since October 2023.
SAFE reported that China’s gold reserves for October were valued at $306.41 billion, down from $323.52 billion in September. The lower valuation comes despite the physical additions to reserves, reflecting the impact of declining global bullion prices rather than reductions in quantity.
Observers note the distinction between the volume of gold acquired and its market valuation, especially during periods of significant price corrections. An increase in physical holdings can occur even as total reserve values decrease when gold prices experience sharp declines.
China raised its gold reserves by 26 tonnes in October 2026 to 78.30 million ounces, extending its central bank buying streak to 24 consecutive months. This continued accumulation occurred in the face of gold price declines and signals a commitment to reserve diversification amid market turbulence.
In total, China added 129 tonnes to its gold reserves in the first ten months of 2026, according to data reported by Investing.com, solidifying its position as the largest publicly declared official-sector buyer during the third quarter.
Mini dictionary: State Administration of Foreign Exchange (SAFE) – The government agency in China responsible for managing the country’s foreign exchange reserves, including gold and other assets held on behalf of the central bank.
Global central banks accelerate gold buying amid price weakness
Gold prices tumbled nearly 7% in October, with the metal briefly dipping below $4,000 per ounce and reaching a one-year low. Despite this decline, the PBOC did not slow its buying activity. The WGC indicated that central banks worldwide added a net 321 tonnes of gold between July and September, marking the strongest quarterly accumulation since late 2024.
China’s role as the largest purchaser underlines a broader trend of institutional demand for the metal. The WGC identifies safety, liquidity, and portfolio diversification as key drivers for central banks holding gold, especially as alternative reserves.
However, analysts caution against reading a specific motive into China’s latest acquisitions. While reserve diversification appears likely, precise strategic considerations behind these purchases remain unclear.
| Country/Entity | Gold Added (July-Sept 2026) | Total Official Gold Holdings (Oct 2026) |
|---|---|---|
| China (PBOC) | 63 tonnes | 78.30 million oz |
| All Central Banks (WGC) | 321 tonnes (net) | — |
XAUUSD technical outlook and key price levels
Global gold markets are displaying a mixed technical picture. TradingView figures as of the November 6 session showed spot gold (XAUUSD) at $4,069.63, down $17.52, or 0.43% for the day. Technical indicators were evenly split, with nine sell signals, nine neutral signals, and seven buy readings, according to the TradingView technical summary.
Momentum indicators revealed a neutral stance. The 14-period Relative Strength Index registered 48.32, while the Stochastic %K was 65.38 and the Commodity Channel Index nearly flat at -0.45, all indicating moderate price momentum without strong directional pressure.
Shorter-term moving averages remained supportive, with the 10-period exponential and simple moving averages providing buy signals at $4,034.26 and $4,013.37. The 20-period averages also indicated support. However, longer-term indicators painted a more cautious picture: the 30, 50, 100, and 200-period moving averages reflected persistent bearish sentiment, with the 200-period simple average at $4,480.11, significantly above current levels.
| Indicator | Value | Signal |
|---|---|---|
| RSI (14-period) | 48.32 | Neutral |
| Stochastic %K | 65.38 | Neutral |
| 10-period EMA/SMA | $4,034.26 / $4,013.37 | Buy |
| 200-period SMA | $4,480.11 | Sell |
Classic pivot calculations placed the central pivot at $3,991.10, with the November 6 close above this point. Resistance appears at $4,111.94 and $4,348.69, while the nearest supports are found at $3,754.35 and $3,633.50.
Fibonacci analysis also highlights resistance at $4,127.70 and $4,212.09, with initial support at $3,854.50. The $3,991 area currently acts as a central technical level, with potential for a short-term bullish shift if the price can maintain support and challenge resistance zones.
Outlook for gold amid central bank accumulation
China’s persistent gold acquisitions continue as gold prices remain under pressure from macroeconomic factors and investor sentiment. The PBOC has consistently expanded its holdings through various market conditions, emphasizing a longer-term commitment even during downturns.
Broader drivers, including shifts in interest rate expectations, currency movements, and geopolitical tensions, continue to shape the trajectory of global gold prices. As gold does not offer yields, its relative appeal depends on the environment for interest-bearing alternatives such as government bonds.
While Chinese demand highlights sustained institutional appetite, the technical picture stays mixed. Recovery prospects in the gold market will hinge on whether buying interest can overcome resistance lines and restore positive momentum in the months ahead.
