The US dollar is strong today but that hasn't halted the advance in gold. It's up $9.50 to $2005. Traders are eyeing last week's high of $2009 as short-term resistance.
The World Gold Council today reported that central banks bought 800 tonnes in the first nine months of the year, up 14% y/y. Of that, 181 tonnes went to China. The rise this year comes despite a record high in buying the year before at 1081 tonnes.
It's been rumored that China's central bank and its people have been big buyers of gold all year. The recent late-September dip in gold prices coincided with a Chinese holiday, adding to that belief.
Other central banks that have been buying include Poland at 57 tonnes and Turkey with 39 tonnes.
The speculation is that China and Russia are buying even more than is officially reported.
November is traditionally the seasonal low in gold followed by three months of buying into the next round of Chinese holidays. Next year, a dovish turn from the Fed and a fall in the US dollar could breathe further life into gold, which is at or near record highs against most other currencies.
