FTSE up and US stocks tepid as markets look to inflation data #UKFinance

Yahoo Finance UK’s Pedro Goncalves writes:

Gold (GC=F) prices climbed on Monday morning following news that China’s central bank had resumed its gold buying spree after a six-month hiatus, providing fresh support for the precious metal.

Spot gold gained 0.4%, trading at $2,647.56 per ounce, while US gold futures rose 0.5% to $2,671.70 at the time of writing.

The move by China’s central bank to resume gold purchases in November is seen as a positive development for gold, with IG market strategist Yeap Jun Rong describing it as “good news for gold bulls.” The return of the People’s Bank of China (PBOC) to the market signals potential strength for bullion prices, offering reassurance to investors.

China’s resumption of buying is expected to boost domestic demand, which had waned after the PBOC paused its 18-month gold acquisition streak in May. Analysts at OCBC noted that the decision to increase gold holdings—particularly following the US presidential election victory of Donald Trump—illustrates the PBOC’s proactive approach to safeguarding economic stability amid shifting global conditions.

Gold prices have been buoyed this year by strong central bank buying, easing monetary policy, and escalating geopolitical tensions. As a result, the metal has reached multiple record highs, positioning it for its best annual performance since 2010, with a nearly 28% increase year-to-date.

Gold, traditionally viewed as a safe-haven asset during times of economic and political uncertainty, also thrives in a low-interest rate environment, further driving investor demand.

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