With the sudden pivot of global banks towards gold, the price of the yellow metal has skyrocketed to breach its previously held records. Gold is currently sitting at $2,320, with trajectories projecting a strong price pull brewing in the center.

The sudden bolstering of gold has primarily been driven by the global bank’s XAU buying spree. The development has played an elemental role in fueling the price of gold. But there’s more than meets the eye. 

It seems that China is pioneering this narrative, and not just the plain old policy vertical perspective. Gold has become a popular metal in China, with regular households banking on it to stabilize their long-term profits and returns. 

Also Read: Ditch the US Stock Market and Invest in Gold in 2024: Explains Analyst

Chinese Investors’ Obsession With Gold: What’s Happening?

Image Source: Watcher Guru

Chinese have lately been banking on the “exquisite yellow metal”, which seems evident from the nation’s skyrocketing gold import metrics. 

China’s gold imports have skyrocketed since the start of 2024, driven by failing equity and the real estate market crisis that the country is currently battling with. 

Per Wall Street Silver on X, the property sector meltdowns, coupled with the eroding equity market in China, are now compelling Chinese investors and citizens to hoard gold. 

“While the property sector has been in meltdown for the last few years and the Chinese equity markets remain in a bear market, the love for bullion on the mainland has led to incessant buying by households.”

The platform was quick to share metrics, adding that China has imported nearly 2800 tons worth of the yellow metal till now, outpacing all previously established records and thresholds in the area. The development further denotes that it’s not just the banks that have been purchasing the precious metal in China; the average Chinese household is also capitalizing on gold, fueling its price to touch new highs. 

“In the last two years, overseas purchases totaled over 2,800 tons—more than all of the metal that backs exchange-traded funds around the world. So, it’s not only the central banks buying the shiny yellow metal, but also the cash-rich Chinese HHs.”

Chinese Gold Imports Are SKYROCKETING!

Markets in the world’s second-largest economy are always known for speculative activities, as the cash-rich Chinese love to speculate.

While the property sector has been in meltdown for the last few years, and the Chinese equity markets… pic.twitter.com/VODkP4Apgs

— Wall Street Silver (@WallStreetSilv) May 4, 2024

Gold to Undergo Further Correction?

Analysts on X are projecting new price milestones for gold to breach this year. Rashad Hajiyev, a notable financial analyst, shared that the precious yellow metal will slightly correct its price before the US session. 

Also Read: 3 Reasons Gold Is Superior to Other Investments

Hajiyev later stated how miners can also play a crucial role in rallying the price of the yellow metal. Per the analyst, gold can breach the $2,375 price milestone in the coming months. 

I would like gold to slightly correct until opening of US session and then rally taking miners higher. Let’s see if miners could get the most out of the counter trend rally this week.
My target for gold is $2,350 – 2,375… pic.twitter.com/rpkn1yh7Px

— Rashad Hajiyev (@hajiyev_rashad) May 7, 2024


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