The People’s Bank of China (PBoC) continued buying gold for the sixth consecutive month in April. Carsten Fritsch, a commodity analyst at Commerzbank, highlighted this development. Below, we take a look at the key events and global gold price analysis for May 9, 2025.
According to the report, China’s gold reserves increased by around 70,000 ounces last month, equivalent to just over 2 tons. This figure is lower than the purchases in March, when the central bank bought nearly 3 tons of gold. In January and February, monthly purchases were about 5 tons, while in December they reached more than 10 tons.
Since the PBoC resumed gold purchases last November, the total volume has reached 970,000 ounces, or just over 30 tons. In the past, the central bank had bought similar amounts in much shorter periods — for example, in November and December of 2022. Therefore, the current purchases are not comparable with those of that time.
The reduced buying volume could be linked to the sharp rise in gold prices. However, it’s also possible that some purchases were not officially reported. Over the past three years, there has been a significant discrepancy between the gold purchase data from central banks reported by the World Gold Council and the actual reserves disclosed by central banks themselves.
Gold Price Analysis May 10th, 2025
This past week, the gold market saw a relatively sharp bullish trend that continued until Friday. However, on the final day of the week, part of this move was corrected, and the weekly candle closed with a long upper shadow.
As seen on the 1-hour timeframe chart, gold broke out of the upper boundary of its channel and climbed up to the 3430 level. This range was precisely the target of the breakout, and upon reaching it, buyers began to take profits — which caused a reversal in the market direction.
Currently, the price has reacted to the 3270 support level and managed to hold above it. As long as this level is not broken, we can expect a potential continuation of the upward movement.
The most important resistance levels are 3365, 3430, and 3500, while key support levels are 3270 and 3190.
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