Gold Price Poised for Further Gains Amid Central Bank Demand

Gold prices have been steadily increasing, and according to recent data from Coin Bureau, central banks now hold more gold than US Treasuries for the first time since 1996. This trend is expected to continue, with nearly 75% of reserve managers predicting a decline in the dollar's share of global reserves over the next five years.

The current price of gold is trading just above an important support zone at $4,454.99, and analysts believe that as long as it remains above $4,400, the bullish case stays alive. A push back above $4,500 would strengthen the recovery and open the door to higher targets.

The technical indicators are also showing signs of a rebound, with the RSI reading below 30 and bullish divergence indicating that selling pressure is becoming exhausted. If momentum keeps building, traders could start eyeing $4,700, and then a retest of the $4,800 high.