China Extends Gold Buying Streak to 24 Months
SingTao · 3 SOURCESabout 4 hours ago2 MIN
Summary
China's central bank reported another rise in official gold holdings at the end of October, extending a two-year accumulation streak. The People's Bank of China said gold reserves reached 78.30 million ounces, up 830,000 ounces from September, while the State Administration of Foreign Exchange said foreign exchange reserves rose by about US$4.9 billion month on month to US$3.405178 trillion. The broader official reserve asset total, however, fell from the previous month because the marked-to-market value of gold declined as international bullion prices retreated. The latest data also show the pace of gold accumulation has accelerated this year, with gains in recent months accounting for more than half of the increase since January.
Key Points
- The People's Bank of China said end-October gold reserves stood at 78.30 million ounces, up from 77.47 million ounces at end-September.
- October's increase was 830,000 ounces, equivalent to about 1% month on month, marking the 24th consecutive monthly expansion in gold holdings.
- The State Administration of Foreign Exchange said foreign exchange reserves rose to US$3,405.178 billion, up roughly US$4.9 billion or 0.14% from September.
- Total official reserve assets fell to US$3,777.561 billion from US$3,789.425 billion, mainly because gold's book value dropped by about US$17.1 billion
- Gold holdings have risen by 4.11 million ounces since end-January, and the combined increase from July to October reached 2.22 million ounces.
Why It Matters
For Hong Kong investors, the figures point to two moving parts that often affect local market sentiment differently: steady official gold buying and changing valuation effects from global price swings. The data also show that even when foreign exchange reserves are broadly stable, shifts in the US dollar, exchange-rate translation and asset prices can still alter the headline reserve picture watched by regional markets.