Gold Price Soars as South Korea Resumes Central Bank Purchases
South Korea's central bank has resumed gold purchases after a 13-year hiatus, boosting demand and sparking a rally in the precious metal. The gold price surged by over 3% to $4,210, with traders attributing the gains to both renewed central bank buying and increased access to the market.
According to analysts, geopolitical uncertainty and shifting US economic data continue to amplify volatility in gold markets. However, institutional purchases and global risks are driving heightened gold volatility, making central bank activity a key driver for Gold.
The XAU/USD pair is trading above its short-term moving averages but remains below the 200-day moving average at $4,602. Momentum signals are mixed, with some indicators pointing to selling pressure while others indicate renewed buy interest.