Gold prices break out, China continues to buy for the 11th consecutive month

As of the end of September, China's gold reserves reached 74.06 million ounces, up slightly from 74.02 million ounces at the end of August. According to the PBOC, the value of the country's gold reserves at the end of last month reached 283.29 billion USD, higher than the 253.84 billion USD in August.

This strong figure reinforces the view that China is looking to reduce its dependence on the US dollar and accelerate de-dollarization, Ross Norman, an independent precious metals analyst, told Reuters.

Even small purchases will be seen as a positive domestic signal, helping to narrow the significant price difference on Loco Shanghai and strengthening the confidence of investors, ETFs and institutions that gold prices will continue to increase, he added.

Since the beginning of 2025, gold prices have increased by more than 52%, supported by political and economic instability related to US tariffs, geopolitical conflicts, expectations of the US Federal Reserve (FED) to cut interest rates, a weak USD and strong gold purchases from central banks.

Previously, in May 2024, the PBOC suspended its 18-month gold buying streak, but resumed the operation in November last year.