Gold Soars as China Buys 82 Tonne Gold Spree

Gold prices surged to a six-week high on August 5 as Chinese demand pushed gold-backed exchange-traded funds (ETFs) to record 14 consecutive days of inflows. The People's Bank of China purchased 82 tonnes of gold over the past 20 months, supporting retail appetite and institutional participation in these products.

Chinese ETFs saw a significant recovery from June, when they posted their worst month of outflows on record. Despite this, first-half inflows reached $5.6 billion, making it the second-best result for these products.

In contrast, Bitcoin remained stagnant near $64K, unable to benefit from the positive tone set by US equities and precious metals. Analyst Rekt Capital noted that the support zone is generating increasingly weak bounces, which could lead to a breakdown into the $58,000 to $66,000 range.