Central-bank buying has been a key driver of gold’s ferocious run in the past three years, with prices reaching all-time highs above US$4,380 an ounce in October before pulling back in recent weeks. Despite the sovereign purchases’ key role in gold’s prices, they are shrouded in mystery as countries often under-declare their buying.
“We continue to see elevated central bank gold accumulation as a multi-year trend, as central banks diversify their reserves to hedge geopolitical and financial risks,” the analysts said in a note Monday. “We maintain our assumption of average monthly central bank buying of 80 tonnes” in the fourth quarter to 2026.
The bank still sees gold prices reaching US$4,900 an ounce by the end of next year, boosted by continued central bank buying and private investor inflows under the Federal Reserve’s easing monetary policy.
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