Central banks’ sustained gold purchases drive prices to May highs, signaling potential for further gains amid shifting reserve strategies.
Gold prices surged to $4,600 an ounce, reaching their highest level since May, as central banks continue to accumulate the precious metal. The rally follows a pullback earlier in 2026, with investors flocking to safe-haven assets amid strong short-term momentum.
A World Gold Council survey revealed central banks purchased an average of 1,000 metric tons of gold annually over the past four years, double the prior decade’s average. Over 80% of surveyed banks expect gold reserves to rise in the next five years, while 74% anticipate a decline in U.S. dollar-denominated reserves.
The shift underscores gold’s growing appeal as a reserve asset, reinforcing its role in portfolios despite elevated prices.