People's Bank of China: China's gold reserves at 73.83 million ounces (about 2296.37 tons) at the end of May, an increase of 60,000 ounces (about 1.86 tons) month-on-month, marking the seventh consecutive month of gold increase.
Gold was still shaking and fluctuating in a narrow range on Friday, but today it opened low and closed low, and a baritone line came, swallowing up the pitiful increase that had been hard-working to rise back on June 3 in one bite! This trend looks so frustrating! I feel that the capital bosses are quietly retreating again!
What's even more scary is that this adjustment is the largest in the past month! The non-farm data last Friday seems to have given gold a heavy hammer! But stop! Don't rush to cut your flesh! Let’s take a step back and think about it. Since the mid-sun rebound on May 21, hasn’t gold been moving so sideways? Sometimes I want to rush up, and sometimes I fall again. Both long and short sides seem to be in a tug-of-war, and no one can gain an absolute advantage! I said last week that this is likely because the main force is deliberately making trouble, making you unable to see the direction clearly!
Now looking at the technical aspects, the 60-day line is quietly moving upward, almost sticking to other moving averages, forming a dense area. What does this mean? This means that the cost of buying is getting closer and closer! This situation also happened in 2023 and 2024! Once everyone’s costs are the same, it will explode, either up or down!
The most important thing is, don't forget! The central bank's bigwigs have been increasing their holdings of gold for seven consecutive months! This is not a small fight, it is a signal from the national team! The long-term main funds are still flowing in quietly! This pair of gold's long-term fundamentals is simply a decisive needle! I think there is a high probability that gold will copy the script that surged after the sideways trading last year! Think about the meat from last year, is it drooling?
Don't be anxious in the short term! You can pay attention to whether the lower shadow signal will appear after this adjustment. If one day it stumbles downward and then stubbornly pulls it back, leaving a long lower shadow line, it is likely that the main force is giving you a signal that the second entry! Opportunities are right in front of you! In the long run, there is no need to panic! The benefit of the central bank's increase in holdings is still there! Moreover, the center of gravity of gold did not drop down! Now there is still some distance away from the 10-week line, so there is no need to run away early! Let's just wait. If it really can't stand it, it's not too late to change your mind! Remember, the long-term opportunity has not yet left, and the short-term situation is waiting for the rebound signal. Then, let’s look bullish together!
——After reading it, the funds make a lot of money! ——
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