The world’s largest consumer of gold is buying again…and prices are rising

By 07:41 GMT, gold in immediate trade was up 0.5 percent at $2,646.69 an ounce. U.S. gold futures rose 0.3 percent to $2,668.20 an ounce.

Traders are now awaiting US inflation data, which will be released on Wednesday.

Yip Jun Rong, market strategist at IG, said: Gold prices It got a boost from news that China’s central bank resumed purchases of the precious metal in November, seen as “good news for gold investors” as it reassures them that the People’s Bank of China will continue to support prices, according to Reuters.

Continued gold purchases by China’s central bank could boost demand from Chinese investors, which has fallen since the bank stopped buying gold in May after 18 months of continued purchases.

Analysts at OCBC Bank said: “The decision to increase gold reserves, especially after (US President-elect Donald) Trump’s election victory, reflects the Chinese central bank’s proactive approach to maintaining economic stability amid increasing global changes.”

Increased central bank gold buying, easing monetary policy and geopolitical tensions have pushed gold to multiple record highs this year, putting the precious metal on track for its best year since 2010, up nearly 28 percent year-to-date.

Gold is often considered a safe haven in times of economic and political turmoil and thrives in a low interest rate environment.

Yip stated: “Inflation data could determine whether US policymakers cautiously cut interest rates next week, which could help strengthen the dollar and weaken gold prices if the Federal Reserve decides to hold off on interest rate cuts until early 2025.”

As for geopolitical tensions, Syrian opposition fighters took control of the capital Damascus yesterday, Sunday, after a lightning attack that sent President Bashar al-Assad fleeing to Russia after 13 years of civil war and nearly six decades of rule by his family.

Among other precious metals, silver rose 0.8 percent to $31.22 an ounce. Platinum rose 1.1 percent to $940 an ounce, and palladium rose 1.5 percent to $970 an ounce.