Gold edged higher in Asian trade as investors weighed the prospect of fresh buying from China. Sentiment in the market has been supported by expectations that the People's Bank of China will continue adding to its gold reserves, according to ANZ.
The outlook for China's central bank purchases has become a key factor for traders watching the precious metal. Continued accumulation by the People's Bank of China would signal sustained official demand, a development that analysts often view as supportive for bullion prices over the medium term.
ANZ's assessment points to a view that reserve additions by the People's Bank of China could underpin gold's recent gains. Such expectations help explain why prices held firm during the Asian session despite broader market uncertainty.
Market participants will continue to monitor official reserve data and any statements from Chinese authorities for further clues on the pace of gold accumulation. For now, expectations of steady demand from the People's Bank of China remain the main driver of sentiment in the gold market.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing