Gold Soars Above $4,400 as Central Banks and Investors Fuel Recovery
Gold prices have surged above $4,400 per ounce, breaking through key support levels and indicating a potential new recovery cycle for the precious metal.
This upward momentum is driven by a combination of renewed investor demand and increased gold purchases by central banks. According to Zhitong Finance, spot gold was up 0.67% at $4,419.58 per ounce as of writing.
Gold's breach above its 100-day moving average on Monday triggered technical buying, further reinforcing signals of a recovery. Dip-buying activity has emerged in the market, accompanied by increased inflows into Chinese gold exchange-traded funds (ETFs).
The People's Bank of China added 20 tonnes to its gold reserves in July, extending its streak of consecutive monthly purchases to 21 months. Other official institutions are following suit, with the Czech National Bank and the Bank of Korea also increasing their gold holdings.