Gold Holds $3,200 as Central Banks Continue Accumulating

Gold dipped briefly below $3,200 last week before snapping back strongly to close the week at $3,285. The recovery was sharp and decisive, driven by renewed central bank buying as well as short-covering from speculative traders who had been betting on further weakness. The $3,200 level is emerging as a key structural floor in the current cycle.

Central Bank Demand in Focus

China's People's Bank resumed its gold buying programme after a two-month pause, adding 18 tonnes in May according to official data. India's Reserve Bank added 12 tonnes, and the Central Bank of Turkey continued its steady accumulation at 8 tonnes per month. This collective buying - representing roughly 38 tonnes per month at a minimum - creates a constant source of demand that absorbs selling from other market participants.

Why $3,200 Is Critical

The $3,200 level represents a confluence of technical factors: it is the 38.2% Fibonacci retracement of the February-June 2026 rally, it aligns with the 50-day moving average, and it was a significant breakout level from April. Three independent signals pointing to the same price makes it a high-conviction support zone.

• Strong support: $3,190 - $3,210
• Next resistance: $3,340 / $3,380
• Trend: Bullish above $3,100

Medium-Term Outlook

With the Fed moving toward cuts, central banks buying, and geopolitical uncertainty elevated, the structural case for gold remains strong. Target $3,500 by year-end remains reasonable based on the current trajectory. Short-term corrections to $3,150-$3,200 should be viewed as buying opportunities rather than trend reversals.