Gold Prices Drop Sharply as China Halts Reserve PurchasesHello everyone! Yesterday, international gold prices saw a significant drop, currently trading around $2,320 per ounce, down 1.5%. The primary reason for this decline is China's announcement to halt purchasing gold for its national reserves. China's decision has reduced the demand for gold in the international market, leading to strong selling pressure and a sharp decline in gold prices.
Trend Forecast:
If gold prices can recover and surpass the resistance level, an upward trend may resume. This potential recovery could be supported by factors such as:
Decreased US Treasury Yields: When treasury yields fall, gold becomes more attractive as a non-yielding asset.
Weakening USD: A weaker USD makes gold cheaper for investors holding other currencies, boosting demand for gold.
What do you think about China's decision to stop buying gold? Will it have a long-term impact on gold prices? Share your thoughts and join the discussion!