China adds 25.8 tonnes of gold in October as reserve value falls
Official holdings rose to 78.30 million ounces, while their dollar valuation declined, separating physical demand from the value of the stockpile.
Theo Marchetti
China's central bank added about 25.8 tonnes of gold to its reserves in October, according to official data released Nov. 7, extending official demand for the metal sold by Toronto Stock Exchange-listed producers.
Agnico Eagle Mines Limited TSEAEM NYSEAEM, one such producer, reported a realized gold price of US$4,264 an ounce in its Oct. 28 quarterly results. Its results show how bullion prices feed into producers' cash generation, alongside production volumes and costs.
China's holdings reached 78.30 million ounces at October's end, up from 77.47 million in September. Their reported dollar value nevertheless fell to US$306.411 billion from US$323.517 billion, showing that a larger physical stockpile can carry a lower valuation.
Ahead of the reserve release, Agnico Eagle shares closed up 2.23 per cent at C$270.75 on the Toronto Stock Exchange on Nov. 6 at 4 p.m. EST, according to Google Finance TSEAEM. That close preceded the Chinese figures.
Physical Holdings Rise As Valuation Falls
The State Administration of Foreign Exchange publishes the gold quantity in units of 10,000 ounces. October's increase was 830,000 ounces, equivalent to approximately 25.8 tonnes after conversion from troy ounces.
The distinction between quantity and valuation separates reserve accumulation from movements in the stockpile's dollar worth. The reported value is the valuation of all the gold held, rather than the amount paid for October's additions.
China's 2025 reserve table put year-end holdings at 74.15 million ounces. Combined with the October figure, that indicates an increase of 4.15 million ounces during the first ten months of 2026.
The 2026 table shows holdings increasing in every month through October. It does not identify the sellers, transaction prices or individual purchase dates behind those monthly changes.
Official Buying Exceeds Disclosed Purchases
The World Gold Council's Nov. 3 demand report estimated central-bank demand at 321 tonnes in the third quarter. Purchases through September reached 675 tonnes, up 6 per cent from the same period of 2025.
Disclosed net buying amounted to 120 tonnes in the quarter, substantially below the council's estimate. Its methodology includes estimates of activity absent from official statistics because of reporting delays or non-disclosure.
"This means that disclosed country-level purchases provide only a partial picture of the underlying sources of demand," the council said in its Nov. 3 report.
The council attributed the broader buying trend primarily to longer-term diversification and risk management. It said easing prices and lower volatility may have supported purchases at the margin, rather than establishing them as the sole explanation.
For listed producers, demand is only part of the earnings picture. Agnico Eagle reported third-quarter payable gold production of 814,012 ounces and free cash flow of US$852 million in its Oct. 28 release, attributing cash generation to operational performance and realized gold prices.
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SAFE's next monthly reserve update will cover November holdings, showing whether reported accumulation continued beyond October.
