Gold surged past $4,320 per ounce as China’s central bank extended its unprecedented buying streak to 21 consecutive months, adding 640,000 ounces to reserves according to ING analysts Ewa Manthey and Warren Patterson. The People’s Bank of China continues to lead a sustained wave of central bank accumulation that is fundamentally reshaping the precious metals market dynamics.
The rally is receiving dual support from both institutional central bank demand and a notable pickup in Chinese retail investment through exchange-traded funds. This combination of official sector buying and grassroots investor appetite signals deepening concerns about currency stability and geopolitical risk among Chinese market participants. The persistent accumulation pattern by the PBoC suggests this is a strategic long-term positioning rather than opportunistic buying, providing a solid floor under gold prices even amid broader market volatility.
FXnCO Insight
Traders should view any gold dips as potential buying opportunities while central bank accumulation remains active, as institutional demand at this scale typically supports sustained upward price momentum.
Source: FXStreet