Beijing's Yellow Strategy: China Accumulates Gold Uninterrupted for 21 Months

Witnessing a fundamental shift in the global financial architecture, the People's Bank of China (PBOC) has once again acted on its currency diversification strategy, increasing gold reserves for the 21st consecutive month. This move stands as the most tangible indicator of the effort to reduce the weight of the US dollar in world reserves and establish a buffer against geopolitical risks.

Beijing's Yellow Strategy and Global Repercussions

PBOC's consistent buying policy is more than a simple portfolio rebalancing; it is a reflection of an intention to redraw global power balances. The "return to gold" trend among central banks has gained momentum under China's leadership.

■China has continuously purchased gold for the last 21 months, bringing its gold reserves to record levels.

■This movement establishes an institutional and official floor for global gold demand, keeping prices at a strong support level.

■Experts note that these purchases reinforce the "safe haven" perception during a period of rising geopolitical tensions.

Technical Perspective on the Gold Market

According to our algo-trading models and quantitative analyses, the structural disruption caused by this consistent official buying on the XAU/USD pair carries price actions beyond the limits of classical technical analysis. Despite short-term volatility, liquidity flows confirm that the main trend remains upward.

■Gold prices maintain their position above the Ichimoku cloud, reinforcing the bull market signal.

■At Fibonacci retracement levels, the liquidity created by Chinese purchases ensures that pullbacks remain limited.

■Market makers are calculating that such long-term accumulation cycles are often precursors to a powerful price breakout.

In the algorithmic flows of market makers that I monitor, the most critical variable is this institutional shift in liquidity depth. China's 21-month steady buying is causing market makers to liquidate short positions and force a challenge towards the upper band of the trend. The expansion in the crossover of "Senkou Span A" and "B" in the Ichimoku Cloud indicates that the medium-term trend has not changed; on the contrary, it maintains its upward momentum bias.