PBOC Did Not Add Gold for a Fifth Straight Month: Bears See $2605 Next
中国央行连续第五个月暂停增持黄金，分析师：空头将寻求金价跌向2605
via Sina.com
China's central bank has suspended its gold holdings for the fifth consecutive month. Analysts: Bears will seek a drop in gold prices to 2605
On Monday (October 7) in the Asian market, spot gold maintained its intraday decline and is currently trading around $2,648.03 per ounce. Nicholas Kitonyi, an analyst at the well-known financial website FXDailyReport, wrote an article analyzing the future trend of gold.
According to the latest news, on October 7, according to the official reserve asset data updated on the official website of the People's Bank of China, as of the end of September 2024, the People's Bank of China's gold reserves were 72.8 million ounces, the same as last month. So far, it has been the fifth consecutive month that the People's Bank of China has stopped increasing its gold holdings.
In May this year, the People's Bank of China ended its 18-year consecutive increase in gold reserves, and the size of its gold reserves has since remained at 72.8 million ounces.
Two pictures to see the technical prospects of gold
In terms of short-term trends, Kitonyi said that from a technical perspective, according to the 60-minute chart of gold, it is trading in a sideways channel. However, the 14-hour relative strength index (RSI) has recently retreated to avoid a rebound to overbought conditions.
Therefore, gold bears will seek to continue the current decline and fall towards $2,627/oz, or lower to $2,605/oz.
On the other hand, gold bulls will look to take profits on a rebound to around $2,667 an ounce, or higher to $2,687 an ounce.
Kitonyi pointed out that on the daily chart, gold prices are trading within an ascending channel. However, the 14-day RSI has recently retreated to avoid a further rally into overbought conditions.
Therefore, gold bears set their long-term profit targets at around $2,557/oz, or lower at $2,472/oz to take profits.
On the other hand, bulls will be looking for a rebound towards $2,719/oz, or higher towards $2,798/oz.
Translated from Chinese