(Kitco News) – After testing resistance at $2,700 at the start of the week, gold is once again on the back foot as stubborn inflation takes its toll on expectations surrounding the Federal Reserve’s easing cycle.
The precious metal received a much-needed boost earlier this week as investors reacted to news that China’s central bank resumed buying gold. After a six-month break, data from the People’s Bank of China showed it purchased five tonnes of gold in November.
According to many analysts, the data underscores China’s significant role in the gold market and highlights healthy central bank demand heading into 2025. However, the precious metal continues to face near-term volatility as attention now shifts to the Federal Reserve’s monetary policy meeting next week.
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