The gold price came under pressure after U.S. inflation data came in hotter than traders had expected. That raised fresh questions about how long interest rates could remain high, and gold fe
The gold price came under pressure after U.S. inflation data came in hotter than traders had expected. That raised fresh questions about how long interest rates could remain high, and gold fell to around $4,320.
Buyers then stepped in near that level, helping the gold price recover toward $4,345. The move shows that demand is still present around the lower levels, even with rate worries weighing on gold.
Even after that drop, one key piece of the story remains unchanged. China continues to buy gold at a strong pace. That demand is helping support the market at a time when higher inflation and rising bond yields are making things more difficult for gold in the short term.
China’s central bank bought another 20 tonnes of gold in August, data shared by The Kobeissi Letter shows. That was China’s biggest monthly gold purchase since October 2023 and extended its buying streak to 22 straight months.
Source: X/@kobeissiletterThe country bought 20 tonnes in July and another 15 tonnes in June. With the latest addition, China has purchased 80 tonnes of gold so far in 2026. For comparison, it added only 29 tonnes during all of 2025. China’s total gold holdings have now reached a record 2,387 tonnes, or about 76.73 million troy ounces.
The August purchase alone added roughly 650,000 ounces to those reserves. The numbers paint a clear picture: China is still buying gold in large amounts even as higher inflation and rising bond yields create pressure in the market. That steady demand from a major central bank continues to provide support for the gold market.
Read Also: Gold Price Forecast: Analyst Predicts $5,000 Gold by Mid-October
Gold came under pressure after inflation data came in higher than many traders expected. Attention is now turning to the Producer Price Index and weekly jobless claims, with fresh CPI numbers due on September 11.
Higher inflation can make investors think interest rates will stay higher for longer. That tends to be a challenge for gold because it does not pay interest. We had a look at the gold chart and found the gold price near $4,345.95, down 1.28% for the session.
Source: X/@ekwufinanceGold dropped from around $4,440 to $4,320 before buyers stepped in and pushed the price away from the lows. There is one encouraging detail on the latest candle: the long lower wick. It points to strong buying near support, helping gold recover from the $4,320 area.
The first level bulls need to reclaim is $4,350. A move above it could put $4,360, $4,370, $4,380, $4,390, and finally $4,400 on the radar. If the gold price moves lower, the first support comes in at $4,340, followed by $4,330 and $4,320. A break below $4,320 could send gold toward the next support near $4,300.
Central banks are not the only buyers keeping demand for gold strong. Gold-backed ETFs also pulled in plenty of money in August. World Gold Council data shows that physically backed gold ETFs attracted $18 billion in fresh inflows during the month.
Their total gold holdings also climbed by 121 tonnes, reaching a record 4,189 tonnes. That gives the gold market another strong source of demand beyond central-bank purchases. That combination of ETF inflows and continued central-bank accumulation is helping offset some of the pressure coming from inflation concerns and rising yields.
For now, the setup is straightforward. The gold price needs to defend the $4,320-$4,340 area and reclaim $4,350. If buyers can achieve that, attention could quickly return to the $4,400 level. If support breaks, traders may begin looking toward $4,300 as the next important area on the chart.
China’s continued central-bank purchases provide an important source of demand for gold. Adding 80 tonnes in 2026 compared with 29 tonnes during all of 2025 indicates a much stronger pace of accumulation.
How do U.S. interest rates affect the gold priceHigher interest rates and Treasury yields can pressure the gold price because investors have greater access to yield-generating assets. Lower yields can create a more favorable environment for gold.
Subscribe to our YouTube channel for daily crypto updates, market insights, and expert analysis.
The post Gold Price Today: China’s Central Bank Buys 20 Tonnes of Gold Again appeared first on CaptainAltcoin.
