China Central Bank Extends Gold Purchases to 24th Month

The People's Bank of China's extension of gold purchases to a 24th consecutive month indicates continued official sector demand and could provide slight support to gold prices. GLD has risen 1.4% in the last 24 hours, and with an RSI of 56, it remains far from overbought territory, leaving room for further upside. However, the MACD is below its signal line and the price is trading well above the SMA20/SMA50, posing a risk of short-term profit-taking. The news alone is not a strong catalyst and may already be priced in. Therefore, I expect a moderate upward bias.

The Central Bank of China extending its gold purchases to a 24th month indicates continued official-sector demand, an intermediate-term supportive factor. However, the price fell 4% over the past 24 hours to 37.66 and is below the SMA20/SMA50; RSI at 38.7 is weak but not oversold, and MACD is in negative territory. The news may trigger short-term dip-buying interest, but the technical picture remains under downward pressure. I therefore expect a mildly positive bias over 1-3 days; a close above 38.5 and a recovery in MACD should be watched for confirmation.