Gold Spot / U.S. Dollar
Short
Updated

Gold rises on continued central bank buying

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Gold prices have continued their upward momentum since last night, reaching as high as 3,403 USD, up 33 USD from the session’s low. At the time of writing, gold is undergoing a slight pullback but remains elevated around 3,385 USD.

The primary driver behind today’s rally is news that the People’s Bank of China (PBoC) continued accumulating gold in July, marking the ninth consecutive month of purchases.

Specifically, PBoC’s gold reserves increased by 60,000 ounces, bringing total holdings to 73.96 million ounces. Since November last year, China has purchased roughly 36 tonnes of gold in a move to diversify reserves and reduce reliance on the US dollar.

This trend of central bank gold buying, particularly by China, has been one of the key factors pushing gold prices up by 30% year-to-date, even though the pace has slowed as prices remain high.

With continued buying from central banks, gold is expected to maintain its upward trajectory, although a stronger US dollar could pose some headwinds.
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