In October, China's gold reserves increased by 26 tons. China's gold buying spree is now in its 24th month, with a cumulative increase of 5.5 million ounces, or about 171 tons, equivalent to more than 13,000 standard gold bars. Due to the decline in gold prices, despite the continued increase in the number of "gold bars" in China's official reserves, the US dollar value of China's gold reserves fell to $306.4 billion from a peak of $387.5 billion in early 2026. However, central banks usually increase their gold holdings not for the purpose of storing value and generating income, but because of low risk and liquidity, which is especially attractive amid the turmoil in the world's major bond markets. The increase in gold reserves reflects the growing need for risk diversification. In addition to gold, China's foreign exchange reserves also increased. As of the end of October 2026, China's foreign exchange reserves totaled $3.4052 trillion, an increase of $4.9 billion from the end of September, an increase of 0.14%. The Foreign Exchange Administration of China explained that the increase in foreign exchange balances this month is due to a combination of factors, including changes in the exchange rate and changes in asset prices. Chinese threat.