{"id":69448,"date":"2023-09-11T14:45:35","date_gmt":"2023-09-11T11:45:35","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=69448"},"modified":"2025-11-19T14:19:34","modified_gmt":"2025-11-19T12:19:34","slug":"gold-appears-to-have-halted-its-rapid-descent","status":"publish","type":"post","link":"https:\/\/www.smartindonesiafx.id\/es\/gold-appears-to-have-halted-its-rapid-descent\/","title":{"rendered":"Gold appears to have halted its rapid descent"},"content":{"rendered":"

Gold at the time of this report<\/a>, seems to be moving in a sideways fashion, after moving lower last week. We note the potential for high volatility in the gold market, due to the numerous high impact financial releases stemming from the US and other economies which are due to be released during the week. In this report, we aim to shed light on the catalysts driving gold\u2019s price, assess its future outlook and conclude with a technical analysis. <\/p>\n\n\n\n

The Japanese consumer, an unlikely gold market participant.<\/strong><\/h2>\n\n\n\n

According to a report by the Financial Times<\/a>, the retail<\/strong> price<\/strong> of gold<\/strong> in Japan<\/strong> had jumped to an all-time high<\/strong> last week, as the JPY<\/strong> has continued<\/strong> its descent<\/strong> against the dollar<\/strong>. According to the report, the recent gold<\/strong> buying spree has been attributed to the Japon\u00e9s<\/strong> consumer<\/strong>, who may be looking for a hedge<\/strong> against inflation<\/strong>, as years of deflation<\/strong> have facilitated<\/strong> rising consumers<\/strong> prices<\/strong>. As such, the fact that gold<\/strong> is not<\/strong> denominated<\/strong> in the Japon\u00e9s<\/strong> Yuan<\/strong>, could also make the precious<\/strong> metal<\/strong> more appealing<\/strong> for the Japon\u00e9s<\/strong> household<\/strong>, who may be worried that in the long run, the dollar<\/strong> may continue gaining<\/strong> against the JPY<\/strong> and as such, they may see a need to reduce<\/strong> their exposure<\/strong> to a weaker<\/strong> JPY<\/strong>. Therefore, given<\/strong> that gold<\/strong> is denominated<\/strong> in dollars<\/strong> and is widely considered<\/strong> to be a hedge<\/strong> against times of inflation<\/strong>, we may see a continued increase in demand<\/strong> from Japon\u00e9s<\/strong> consumers<\/strong>. Lastly, should consumer<\/strong> worries<\/strong> continue to run high about the Bank of Japan\u2019s<\/strong> approach to monetary policy<\/strong> and the dollar<\/strong> continues to gain<\/strong> against the JPY<\/strong>, we may see a continued<\/strong> increased in demand<\/strong> for the precious<\/strong> metal<\/strong> from Japanese households<\/strong> in the long<\/strong> run, thus potentially supporting<\/strong> the price<\/strong> of gold<\/strong>.<\/p>\n\n\n\n

China\u2019s gold shopping spree continues.<\/strong><\/h2>\n\n\n\n

The Chinese Central Bank<\/strong> continued its gold<\/strong> acquisitions<\/strong>, by adding 930,000 troy ounces<\/strong>, or approximately 29 tons<\/strong> to its gold<\/strong> reserves<\/strong> during the month of August. The continued acquisition of the precious metal<\/strong>, continues to drive speculation that China<\/strong> is intent<\/strong> on reducing<\/strong> its reliance<\/strong> on the dollar<\/strong>, as is apparent by its 10-Month<\/strong> consecutive buying<\/strong> streak<\/strong>. According to data from Gold.org<\/a>, China\u2019s total gold<\/strong> reserves<\/strong> now sit at 2,113.46 tons<\/strong>, edging closer and closer to overtaking Russia<\/strong> as the world\u2019s 5.<\/sup> largest holder<\/strong> of the precious<\/strong> metal<\/strong>. Furthermore, given the increasing tensions<\/strong> between China<\/strong> and the US, we may see the Chino<\/strong> central<\/strong> bank<\/strong> continue its gold<\/strong> shopping spree well into the future. However, China\u2019s<\/strong> current economic<\/strong> woes<\/strong> could potentially result in a temporary<\/strong> pause<\/strong> o easing<\/strong> of gold<\/strong> purchases<\/strong>, in order to redirect the banks focus to more imminent<\/strong> economic concerns<\/strong> that may have to be addressed, such as the local debt faced by its provinces and their respective administrations. In conclusion<\/strong>, despite the apparent economic<\/strong> woes faced by China<\/strong>, we may see demand<\/strong> for the precious<\/strong> metal<\/strong> remaining elevated<\/strong> for the time being and as such could lead to support<\/strong> for gold<\/strong> over the long term.<\/p>\n\n\n\n

An\u00e1lisis t\u00e9cnico<\/strong><\/h2>\n\n\n\n

XAU\/USD Gr\u00e1fico 4H<\/em><\/strong><\/h3>\n\n\n\n
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