The price of Gold continued to recover at the end of last week, the quotes reached the resistance level of 1775 Dollars per ounce.
As a result, the value of the precious metal strengthened to a seven-week high and showed the best weekly gain since mid-December as a result of the pullback in US treasury yields and the fall in the Dollar. Gold rose, even despite strong macroeconomic data from the United States, indicating a steady increase in retail sales and a significant drop in the number of weekly applications for unemployment benefits.
China's regulator has allowed national and international banks to import large amounts of Gold into the country, and this has also had a positive impact on world prices. China is the largest consumer of Gold, but its imports have fallen sharply due to the spread of the coronavirus and a reduction in local demand. As the country's economy has recovered rapidly since the second half of last year, interest in jewelry, bullions and coins has also recovered. Since January 2021, domestic prices have been higher than global benchmark rates, making it profitable to import the precious metal. For some time, the People's Bank of China has restricted quotas for Gold supplies to the country. Last week, the regulator allowed the import of Gold in the maximum volume since 2019. The size of the shipments signals China's return to the global precious metals market. Since February 2020, the country has imported an average of about $ 600 million worth of Gold per month, or about 10 tons, according to Chinese customs data. In 2019, imports were about $3.5 billion per month, or about 75 tons.
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The forecast assumes a further increase of gold to the level of $1,790 per ounce.