Commodities
Gold Soars 2% Amid China's Central Bank Buying Streak
Gold prices have surged nearly 2% to $4,322 after China's central bank continued its gold buying streak for 21 consecutive months.
The sustained official demand has underpinned structural support for prices above $4,000 and eased macroeconomic headwinds by alleviating oil-driven inflation pressures.
A partial agreement to reopen shipping through the Strait of Hormuz has also reduced the odds of further Federal Reserve rate hikes, according to Actionforex.
South Korea's central bank is expanding its domestic gold reserves through targeted purchases amid persistent geopolitical risks.
The technical analysis suggests that XAU remains positioned above its MA-20 and MA-50 levels while still capped below the MA-200 level on the daily chart.