{"id":19120,"date":"2025-03-24T11:07:15","date_gmt":"2025-03-24T11:07:15","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=19120"},"modified":"2025-03-24T11:07:15","modified_gmt":"2025-03-24T11:07:15","slug":"gold-holds-on-strong-central-bank-demand","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/gold-holds-on-strong-central-bank-demand\/","title":{"rendered":"Gold Holds on Strong Central Bank Demand"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image_fx_-2025-03-24T190408.948-1024x559.png\" alt=\"\" class=\"wp-image-19121\" \/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Gold futures trade at $3,032.70, close to the all-time high of $3,065.10 set on Thursday.<\/li>\n\n\n\n<li>Central bank demand\u2014led by China at 48%\u2014supports prices despite record-low jewellery demand.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p><strong>Gold futures rose 0.4% to $3,032.70 a troy ounce on Monday<\/strong>, holding close to their <strong>record high of $3,065.10<\/strong> reached last Thursday. The rally comes amid a backdrop of a <strong><a href=\"https:\/\/www.reuters.com\/markets\/currencies\/dollar-drifts-traders-await-trump-tariff-clarity-2025-03-24\/\">softer U.S. dollar<\/a><\/strong>, <strong>heightened central bank buying<\/strong>, and <strong><a href=\"https:\/\/www.reuters.com\/world\/us\/all-donald-trumps-tariff-threats-2025-01-28\/\">concerns over a potential universal U.S. tariff<\/a><\/strong>, according to analysts at Deutsche Bank.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">As gold prices jump to successive highs, jewellers across Asia and the Middle East are grappling with displays losing their sparkle as customers race to cash in their old jewellery and coins. <a href=\"https:\/\/t.co\/kgyZCdonHK\">https:\/\/t.co\/kgyZCdonHK<\/a> <a href=\"https:\/\/t.co\/c7kizhOH4g\">pic.twitter.com\/c7kizhOH4g<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1904099668612526228?ref_src=twsrc%5Etfw\">March 24, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Technical indicators show the <strong>precious metal remains well-supported<\/strong> after dipping to a <strong>low of $2,999.53<\/strong>, with price action gradually climbing back above the $3,020 threshold. As of the latest session, <strong>gold trades at $3,027.64<\/strong>, with strong intraday support anchored above the <strong>psychological level of $3,000<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Central Bank Demand Fuels Resilience<\/strong><\/h3>\n\n\n\n<p>According to Deutsche Bank, <strong>central bank purchases are currently the largest driver of gold demand<\/strong>, with <strong>China accounting for 48% of <\/strong><strong><a href=\"https:\/\/www.reuters.com\/world\/china\/chinas-central-bank-ups-gold-reserves-fourth-straight-month-february-2025-03-07\/\">global central bank buying<\/a><\/strong>. This wave of accumulation has <strong>outweighed a collapse in jewellery demand<\/strong>, which is expected to hit its <strong>lowest level since 1989<\/strong>, largely due to record-high prices.<\/p>\n\n\n\n<p>The shift in demand drivers reflects a broader theme: <strong><a href=\"https:\/\/www.reuters.com\/markets\/commodities\/gold-edges-lower-dollar-strength-traders-await-fresh-catalysts-2025-03-24\/\">gold is increasingly being used as a reserve asset<\/a><\/strong>, particularly by emerging markets seeking diversification away from U.S. treasuries. Concerns around <strong><a href=\"https:\/\/fiscaldata.treasury.gov\/americas-finance-guide\/national-deficit\/#:~:text=Fiscal%20year%2Dto%2Ddate%20(,has%20increased%20by%20%24318%20billion.\">growing U.S. fiscal deficits<\/a><\/strong> and <strong>the <\/strong><strong><a href=\"https:\/\/www.cnn.com\/2025\/03\/12\/economy\/trump-steel-aluminum-tariffs-hnk-intl\/index.html\">possibility of a sweeping import tariff<\/a><\/strong> have also helped boost gold&#8217;s appeal as a hedge against currency debasement and economic disruption.<\/p>\n\n\n\n<p><strong>See also: <a href=\"https:\/\/www.vtmarkets.com\/week_ahead\/week-ahead-tariff-bombshells-in-sight\/\" title=\"\">Week Ahead: Tariff Bombshells in Sight<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Technical Analysis<\/strong><\/h3>\n\n\n\n<p>Gold experienced a sharp drop to a recent low of <strong>$2,999.53<\/strong> after peaking near <strong>$3,047.48<\/strong>, marking a clear rejection from higher levels. However, the price rebounded and entered a steady consolidation phase, holding above the <strong>$3,020<\/strong> level. The recovery has been gradual but consistent, supported by a series of higher lows and narrowing price action.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image-27-1024x441.jpg\" alt=\"\" class=\"wp-image-19122\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Gold rebounds from sub-$3,000 dip, but momentum remains cautiously, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>The <strong>MACD<\/strong> is showing signs of bullish momentum rebuilding, with the MACD line crossing above the signal line and histogram bars turning green. Moving averages (5, 10, 30) are beginning to flatten, suggesting a potential shift in sentiment, though price needs to break past the <strong>$3,031.02<\/strong> high for a stronger confirmation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Cautious Forecast: Gold Faces Dual Pressures<\/strong><\/h3>\n\n\n\n<p>While gold remains buoyed by central bank demand and macroeconomic concerns, <strong>record-high valuations may cap near-term upside<\/strong>. Shrinking jewellery demand and <strong>profit-taking near all-time highs<\/strong> could introduce <strong>choppy price action<\/strong> in the sessions ahead.<\/p>\n\n\n\n<p>Traders should watch for a clean break above <strong>$3,048\u2013$3,065<\/strong> to confirm further upside, while a failure to hold <strong>above $3,000<\/strong> could see gold consolidate or retrace mildly toward <strong>$2,980\u2013$2,950<\/strong>.<\/p>\n\n\n\n<p>In the near term, gold\u2019s path will likely hinge on <strong><a href=\"https:\/\/www.bnnbloomberg.ca\/investing\/2025\/03\/24\/us-treasuries-fall-on-signs-that-trump-will-dilute-april-tariffs\/\">tariff announcements from the U.S<\/a><\/strong><strong>., developments in <\/strong><strong><a href=\"https:\/\/foreignpolicy.com\/2025\/03\/12\/us-budget-deficit-debt-crisis-trump\/\">U.S. debt policy<\/a><\/strong>, and <strong>further signals from central banks<\/strong>\u2014all of which could strengthen its safe-haven appeal or limit demand if risk sentiment stabilises.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold futures near record highs at $3,032.70, boosted by central bank demand and tariff concerns. Technicals point to firm support. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":19121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[6],"class_list":["post-19120","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-gold"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/19120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=19120"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/19120\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/19121"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=19120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=19120"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=19120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}