Central Banks Continue to Support Gold

Since the beginning of August, gold has gained roughly $400, or around 10% — with a large part of that move coming during the first half of the month.

One of the main reasons gold remains so strong is continued central bank buying.

These purchases are not a short-term trade. They reflect a long-term shift in reserve management, with gold once again gaining greater weight alongside dollar assets and government bonds.

That gives the current rally a stronger foundation than short-term speculative momentum alone.

Central banks remain net buyers of physical gold, and structural demand beneath the market remains strong.