China's Gold Buying Binge Supports Prices Despite Headwinds

Chinese demand has been propping up gold prices, providing a floor despite headwinds like higher interest rates.

The People's Bank of China has been buying gold aggressively, hitting a record high monthly purchase in August.

Domestic gold prices in China have spiked far above international spot prices due to ravenous demand.

Some of gold's recent weakness could stem from China's market being closed for holidays.

Analysts don't see China's gold buying abating anytime soon given the cultural affinity and economic rationale.