On June 17, a recent survey from the World Gold Council indicated that more central banks plan to continue increasing their gold holdings. Analysis suggests this type of long-term allocation force is still providing structural bottom support for the gold price.
From the perspective of allocation logic, it is believed that the stable demand from official reserves helps to reduce the interference of short-term volatility on judging the gold trend. The market is also more inclined to view pullbacks as periodic consolidation.
When long-term buying interest intertwines with inflation uncertainty, precious metals typically find it easier to maintain resilience. Therefore, the subsequent pace of gold prices will still need to be measured comprehensively against the interest rate path and the strength of the US dollar.
Overall, the analysis indicates that the sustainability of central bank demand remains a crucial anchor for gold's medium-term performance. As long as the willingness to allocate does not show a significant weakening, support for the gold market is unlikely to loosen quickly.
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