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Gold jumps to two-month high as China boosts reserves and buying
Gold hit about 4,400 per ounce, supported by Chinese institutional demand and People’s Bank of China reserve increases totaling roughly 35 tonnes over June and July.
Gold rose to around 4,400 USD per ounce on Tuesday, reaching a two-month high as safe-haven demand picked up, according to Action Forex.
The outlet cited accelerating buying from Chinese institutional investors and inflows into China’s gold-backed ETFs, described as the longest run of monthly inflows in months. It also pointed to support from the People’s Bank of China, which added roughly 20 tonnes to reserves in July after an increase of about 15 tonnes in June, noted as the largest monthly addition since October 2023.
Action Forex also linked the rally to a more complex macro backdrop, with rising inflation risks and expectations for higher interest rates. It said those views are being influenced by elevated oil prices and that investors are watching this week’s key US inflation data for potential shifts in Federal Reserve policy expectations.
The piece added that uncertainty around a potential US-Iran agreement and developments tied to the Strait of Hormuz are keeping markets on edge. It described XAU/USD chart signals pointing to a possible near-term pullback toward roughly 4,340 to 4,370, followed by a potential push higher toward about 4,575.
Latest closeGold $4,448.60 ▲2.5%