China’s central bank pushed its consecutive gold-buying streak to twenty-four months in October, expanding reserves even as precious metal prices experienced their steepest October decline since 2008. The People’s Bank of China added 830,000 troy ounces—equivalent to roughly 25.8 metric tons—bringing total purchases for the first ten months of 2026 to approximately 129 tons.
Prices Slump Below Thresholds as Central Bank Accumulates
The latest reserve expansion coincided with a sharp market correction that saw gold finish October below the $4,000-an-ounce support threshold after touching a one-year low. Bullion prices fell almost 7 percent during the month. By the close on October 30, London spot gold declined 3.61 percent to $3,875.19 per ounce, whereas COMEX gold futures retreated 3.63 percent to $3,884.90 per ounce.
Higher energy costs linked to the conflict have increased inflationary pressures, encouraging tighter monetary policy. Higher interest rates tend to weigh on gold, which pays no interest.
Retail Demand Surges in Shenzhen and Beijing Markets
The price correction triggered a wave of retail buying across domestic markets. Some brands’ prices fell by nearly 550 yuan ($82.57) per gram from their intra-year highs, drawing consumers to retail shops in Beijing and Shenzhen. A head of a gold jewelry retail store in the Shuibei market in Shenzhen said that customers wanted to buy gold bracelets before she even woke up, opting for heavier weights, and sales have doubled compared with September.
Total sales expanded by 30 percent to 40 percent in October relative to September as bullion rates declined, according to Lin Li, manager at another gold jewelry outlet within the Shuibei market, who noted that wedding sets formed the primary purchase for most buyers. Alongside wedding demand, zodiac-themed gold jewelry saw early traction, with goat-themed items launching in a concentrated manner. Lin Yinzhu, manager of another Shuibei retail establishment, pointed out that goat zodiac gold jewelry quickly expanded its market share during October, overtaking prior horse zodiac products to represent 50 percent of the store’s total transactions within that classification.
According to the findings, the primary motivation behind gold jewelry buying is transitioning away from standard celebratory events toward emotional fulfillment. Personal acquisition serves as an ongoing driver for gold jewelry sales, with forty-four percent of polled retailers noting that patrons purchased items strictly for personal pleasure.
Broader Market Context and Long-Term Trends
Official-sector buying globally has provided crucial support for bullion while retail demand absorbed lower prices. Between July and September, net purchases by global central banks reached 321 tons—marking the highest quarterly volume since the final three months of 2024—with the People’s Bank of China serving as the leading publicly identified official purchaser during the third quarter.
The price correction has released some pent-up demand. Data shows that gold jewelry consumption reached 144 billion yuan, the second-highest first-half figure on record. Purchases driven by personal acquisition represented 27 percent of all gold jewelry sales in 2024, before climbing to 37 percent in 2025.
Earlier coverage: Gold Demand Surges Across Asia As Prices Dip Below $4,000