China's central bank buys gold for 12th straight month

China's central bank added gold to its reserves in October for the twelfth straight month, data from the People's Bank of China (PBOC) showed on Friday.

China's gold holdings increased to 74.09 million fine troy ounces at the end of October from 74.06 million in the previous month. That compares with 72.8 million ounces in the same period a year earlier, an 1.8% increase.

The value of its gold holdings was $297.21 billion at the end of last month versus $283.29 billion in September, according to the PBOC.

Spot gold was trading just above $4,000 per ounce on Friday as the safe-haven regained traction amid a weaker dollar, as bets on a December rate cut by the United States Federal Reserve grew.

Concerns over a prolonged U.S. government shutdown and uncertainty over the legality of U.S. tariffs also helped to support gold.

Gold set a record at $4,381 per ounce in October.

Last week, Beijing cut a value added tax exemption for certain gold purchased through the Shanghai Gold Exchange and the Shanghai Futures Exchange.

Meanwhile, China has yet to release gold output data for the latest quarter, leaving analysts without an updated official production marker.

In May 2024, the PBOC halted its 18-month-long gold purchasing spree. However, the central bank resumed its gold buying in November that year.