The People's Bank of China has paused increasing its gold holdings for the sixth consecutive month, with foreign exchange reserves at USD 3.261 trillion in October
China's gold reserves at the end of October reported 72.8 million ounces, unchanged from the previous month, while foreign exchange reserves decreased by 1.67% month-on-month
Due to the combined effects of exchange rate conversion and changes in asset prices, foreign exchange reserves decreased in October. In addition, the central bank has suspended increasing gold holdings for the sixth consecutive month.
On November 7, the State Administration of Foreign Exchange announced that as of the end of October 2024, China's foreign exchange reserves amounted to USD 326.1 billion, a decrease of USD 55.3 billion compared to the end of September, with a month-on-month decline of 1.67%.
At the end of October, gold reserves stood at 72.8 million ounces, unchanged from the previous month, marking the sixth consecutive month that the People's Bank of China has suspended increasing gold holdings.
The State Administration of Foreign Exchange stated that in October 2024, influenced by the monetary policy expectations of major economies and macroeconomic data, the US dollar index rose while global financial asset prices fell. The combined effects of exchange rate conversion and changes in asset prices led to a decrease in foreign exchange reserves for the month. China continues to promote the implementation of various stock and incremental policies to consolidate and enhance the momentum of economic recovery, which is conducive to maintaining the basic stability of foreign exchange reserves.
After the release of the October foreign exchange reserve data, the RMB exchange rate rose slightly, with overall fluctuations remaining small, maintaining the previous upward trend.
Spot gold rose slightly, increasing by 0.26% to USD 2,666 per ounce during the day. Overnight, under the influence of the "Trump trade," spot gold had previously dropped by more than 3%.
The World Gold Council recently released the "Global Gold Demand Trends Report," which shows that global gold demand reached a record high in the third quarter, with year-on-year growth of 5% in global gold demand, including over-the-counter markets and other sources, reaching 1,313 tons. Additionally, due to a surge in demand for gold ETFs from Western investors, net inflows into global gold ETFs in the third quarter reached 94.6 tons, bringing total holdings to 3,200 tons