Gold Rebounded on Geopolitical Tension in Syria, Chinese Buying Resumption: What’s Next?

The Bank of China reportedly increased its gold reserves in November. According to official data released on Saturday, December 7, they rose by 160,000 ounces to 72.96 million oz.

Until April this year — for 18 months in a row — the People's Bank of China has been adding gold to its strategic reserves, contributing to the price rise of the precious metal. The resumption of purchases shows that the PBOC is still keen to diversify its reserves — and, possibly, worried about some media speculations, that the U.S. may opt to start offering the largest Treasuries holders to accept payments in Bitcoin after republican senator Cynthia Lummis repeatedly called for setting up the U.S. sovereign Bitcoin reserve. China’s resumption of gold buying will notably support both the bullion and the yuan, although gold is still at historically high levels.

Another contributing factor to the gold price advance was the rising geopolitical risks in Syria. The bullion has gained safe-haven demand after Syrian rebels seized Damascus and ousted former President Bashar al-Assad. Currently, COMEX futures are up 0.29% at $2,656.70 an ounce.

COMEX gold futures’ bullish trend is still intact. Friday’s price action has reaffirmed that commodity bears are respecting the immediate support pegged at $2,640/oz.