Gold Flirts with $4,493 Support as PBOC’s 260,000-Ounce April Purchase Bolsters Bulls

PBOC adds 260,000 ounces to reserves, but gold faces macro headwinds from rising yields, strong dollar, and key technical support near $4,493-$4,533.

China’s central bank keeps stacking. The People’s Bank of China added 260,000 ounces to its gold reserves in April, marking the 18th consecutive monthly purchase. This steady accumulation provides a rare anchor in a market that has shed nearly 17% from its January peak of $5,450 an ounce.

But that anchor is being tested. Gold closed the week at $4,521, down roughly 4.5% on the month and trading more than 3% below its 50-day moving average of $4,669. A combination of stubborn inflation fears, rising US bond yields, and a resurgent dollar has weighed heavily on the non-yielding asset.

The broader central bank picture adds more substance to the physical demand story. Global monetary authorities bought a net 244 tonnes in the first quarter of 2026, a slight increase year-on-year, extending a record buying spree that saw 863 tonnes worth an estimated $95 billion change hands in 2025 alone. That structural bid acts as a floor, but it is not enough to overwhelm the macro headwinds.

Technically, the metal is tiptoeing along a critical support zone between $4,493 and $4,533. A daily close below that band would open the door to a slide toward $4,381, according to chart levels highlighted by traders. On the upside, resistance clusters at $4,535 as the first hurdle for a trend reversal, followed by a more meaningful barrier at $4,602. The 50-day line at $4,669 remains the near-term bull target, while the 200-day moving average keeps the overarching uptrend formally intact — for now.

Two catalysts could tip the balance in the coming days. US first-quarter gross domestic product data and weekly jobless claims are due, and any upside surprise would reinforce expectations that the Federal Reserve will keep policy tight for longer. Consumer inflation expectations have already crept higher, signaling that the drag from a hawkish Fed may persist.

Geopolitics adds another layer. The scheduled meeting between Trump and Xi Jinping in Beijing in mid-May could reshape risk perception. A genuine détente would erode gold’s safe-haven premium; a breakdown would send buyers back into the metal.

For the moment, the bears are circling but haven’t broken through. The RSI sits near 50, giving no clear directional signal. The tug-of-war between central bank buying and macro pressure will likely hinge on whether the $4,493-4,533 zone holds through the coming week’s US data releases. If it does, the physical bid from Beijing and other capitals may yet lift gold back toward its 50-day line. If it fails, the correction has further to run.