Gold quotes are correcting upward, trading at $ 1,783 per ounce, and today they can overcome the key resistance at around 1800.0.
During the week, there were reports that China has decided to significantly increase its physical gold imports. According to Reuters, the authorities have allowed banks to purchase an additional 150 tons of metal annually. According to the current import value, this corresponds to $ 8.5 billion. According to analysts, the first import may take place in April-May this year.
Despite the fact that the PRC is one of the world leaders in purchases of gold and silver, this message is alarming for investors. Beijing has repeatedly stated that it is going to create its own currency, which will be backed by physical gold, and the increase in metal imports may just be one of the leading factors of this event.
Support and resistance levels
XAU / USD quotes are moving within the global corrective trend, strengthening in the direction of the resistance line. Technical indicators hold a buy signal: the swing range of the Alligator EMA is expanding in the direction of growth, and the histogram of the AO oscillator is trading in the positive zone.
Resistance levels: 1793.0, 1845.0
Support levels: 1757.0, 1681.0
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