China's Central Bank Extends Gold Purchases to 24th Month

The People's Bank of China's extension of gold purchases into a 24th month indicates continued official-sector demand and could provide mild support for gold prices. However, such central bank buying is largely anticipated by the market, so its impact may be limited. The RSI stands at 56 in neutral territory and below the MACD signal line, suggesting no strong momentum in the near term. Notably, the price is well above the SMA20 and SMA50; this may be related to data quality and warrants a cautious approach. Overall, the news is mildly positive but a weak signal for short-term direction.

The Central Bank of China extending its gold purchases to a 24th month is a structural support signal showing that official-sector demand persists. However, the price has fallen 4% in the last 24 hours, dropping below the SMA20 and SMA50; the RSI at 38.7 is weak but not in oversold territory; and the MACD is in negative territory and below its signal line. The news alone may not be enough to reverse the short-term downward momentum; rebound buying may remain limited. A slight recovery is possible in the 1-3 day outlook, but trend uncertainty is high. I therefore mark the direction as 'up' with a low confidence level.