- After Friday's slump, gold regains its balance and gains 2.5%
- After Friday's slump, gold regains its balance and gains 2.5%
After Friday's slump, which brought gold prices down by almost 2% from record highs of $4,378 per ounce, the market is regaining its balance in Monday trading. The spot price is once again hovering around $4,320, supported by expectations of further interest rate cuts by the Federal Reserve and continued demand for safe-haven assets. Analysts point out that the correction was technical in nature and was the result of profit-taking after several weeks of dynamic growth. President Donald Trump's reassuring statements about a “more reasonable” approach to China temporarily weakened demand for gold, but upcoming trade talks and the ongoing government shutdown in the US are again increasing uncertainty.
The People's Bank of China (PBoC) continues to purchase gold regularly – in September, it made its 11th consecutive accumulation, buying 1.2 tons, and in the entire third quarter, the increase amounted to 5 tons, bringing official reserves to 2,303 tons (7.7% of the value of foreign exchange reserves). This clearly confirms the strategic importance of gold for China's reserve policy.
The increased demand is also due to large purchases of ETFs. These funds recorded record inflows in the first two quarters of the year (a total of 79 tons of gold on the Chinese market), although Q3 saw slight net outflows.
Source: World Gold Council, ETF data for the Chinese market.
GOLD is returning to its recent historical highs. The RSI for the 14-day average on the D1 interval remains above 70 points. Source: xStation
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