Chinese Gold purchases: China is on a Gold shopping spree

Author: Giles Coghlan | Category: News

Gold to go, via Reuters

China, Gold reserves, Safe haven

China expands their gold buying spree as they increase their gold reserves for a fourth month in a row.  This adds to Gold bulls hope that central banks around the world will increase their holdings. According to a Reuters report the latest data from the PBOC is that the country is adding to its gold reserves in a similar way as it did from mid-2015 to October 2016, when the country boosted holdings almost every month. Take a look at the chart below 

Gold to go, via ReutersI have come across a lot of talk recently about folks being bullish on Gold, but I think that there is going to need to be some fundamental driver to push Gold above the daily resistance level in the $1371 region. Reuters reported that Governments across the world have added 651.5 tons of bullion in 2018, the second highest total on record, according to the World Gold Council. Russia is said to have quadrupled it's Gold holdings in order to stop the countries dependence on the US dollar.  Goldman Sachs is expecting a rally to $1450 in gold and Gold currently trades just above the $1300 level. See Greg's technical rundown here from April 9. The daily overhead resistance level is a key level to watch. 
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