Gold has reclaimed the $5,000 per ounce level after a volatile period—including a sharp pullback from its all-time high above $5,600 in January and a dip below $5,000 earlier this month—gold prices have bounced back strongly in recent trading sessions.
Spot gold is trading around $5,005–$5,014 per ounce today, up roughly 0.75–1% on the day, building on a nearly 4% gain from Friday. Gold futures have climbed to approximately $5,029–$5,046 per ounce, with intraday highs pushing toward $5,050+ in some reports.
This recovery is driven by several key factors: A weaker U.S. dollar, which makes dollar-denominated gold more attractive to international buyers. Ongoing safe-haven demand amid global economic and geopolitical uncertainties, including concerns over U.S. policy impacts on trade relations and a shift away from the dollar as a reserve asset.
Continued central bank buying, such as the People’s Bank of China adding to reserves noted in recent data. Anticipation of upcoming U.S. economic data like jobs reports and inflation figures, which could influence Federal Reserve interest rate expectations—lower rates generally support non-yielding assets like gold.
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Silver has also surged alongside gold, climbing nearly 5% today and pushing back toward or above $80 per ounce in some sessions. The precious metals market remains highly volatile, with gold having seen dramatic swings recently including a drop to around $4,600–$4,700 before this rebound.
Analysts view this reclaim of $5,000 as a bullish signal, with many expecting the longer-term uptrend to continue—potentially testing higher levels later in 2026—though consolidation or further corrections are possible.
Central bank gold buying refers to the practice where national central banks (the institutions that manage a country’s monetary policy, foreign exchange reserves, and financial stability) actively purchase physical gold to add to their official reserves.
This has been a major driver of the gold market in recent years, particularly since 2022, when purchases accelerated dramatically. In 2025, central banks added an estimated 863 tonnes of gold net according to the World Gold Council, down from over 1,000 tonnes in each of the prior three years but still well above the long-term historical average of around 400–500 tonnes annually before 2022.
Buying remained robust into late 2025 and early 2026, with emerging-market banks leading the charge like Poland, Kazakhstan, China, India, and Turkey among the top buyers. Forecasts for 2026 suggest continued elevated demand, potentially around 700–850 tonnes or more, providing a strong underlying floor for gold prices amid the recent surge past $5,000 per ounce.
Why Are Central Banks Buying So Much Gold?
Central banks treat gold as a strategic asset in their foreign exchange reserves alongside currencies like the US dollar, euro, yen, etc. Unlike fiat currencies or bonds, gold has unique properties that make it appealing in the current global environment.
Here are the main reasons driving this trend: Diversification away from the US dollar (de-dollarization). Many central banks, especially in emerging markets and those less aligned with the US geopolitically, seek to reduce over-reliance on dollar-denominated assets (like US Treasuries).
Gold is a neutral, non-sovereign asset not controlled by any single government, helping balance reserve portfolios as the dollar’s share of global reserves gradually declines. Protection against geopolitical risks and sanctions.
Events like the freezing of Russian reserves in 2022 following Western sanctions highlighted vulnerabilities in holding foreign currencies or assets abroad. Gold is physically held often repatriated from vaults in New York or London, cannot be easily frozen or sanctioned, and serves as an independent store of value during conflicts, trade wars, or political uncertainty.
Gold has historically preserved purchasing power over long periods, especially when fiat currencies face inflationary pressures from high debt, loose monetary policy, or economic instability. In times of rising global debt or uncertainty, central banks view it as insurance against erosion of reserve value.
Gold tends to rise or hold value during periods of financial turmoil, economic slowdowns, or market volatility—when other assets like stocks or bonds falter. Surveys from the World Gold Council and others show central banks increasingly see gold as a crisis performer and portfolio stabilizer.
Emerging-market central banks remain underweight in gold compared to developed ones where gold often forms 10–70% of reserves. Many are gradually increasing allocations as part of broader reserve diversification. Repatriation trends bringing gold home and strong survey responses indicate intentions to keep buying.
This buying is largely price-inelastic—central banks tend to purchase steadily regardless of short-term price swings—making it a structural (long-term) demand driver rather than speculative. It contrasts with more volatile investor demand and helps explain why gold has maintained strength even amid corrections.
Ongoing central bank activity—combined with other factors like a weaker dollar and safe-haven flows—continues to support the rally, with many analysts expecting this trend to persist through the year and beyond.