China's Central Bank Boosts Gold Demand Amid Inflation Concerns

Gold prices have remained steady at $4,405, despite some minor gains for the session. The current price is below its key moving averages, indicating prevailing seller pressure.

The China central bank has made its largest monthly gold purchase since 2023, acquiring 650,000 ounces of gold in August. This significant addition to official gold reserves directly strengthens physical demand and reinforces central banks' role in shaping bullion market trends.

Renewed attacks on ships in the Middle East have heightened inflationary concerns, fueling speculation around prospective US rate hikes and their indirect effect on gold's safe-haven appeal.

A technical analysis of the XAU price suggests bearish momentum prevails as resistance levels constrain attempts at reversal. Over the next two to three days, a typical volatility band for gold is expected between $4,330 and $4,481.