Asian Central Banks Fuel Gold Price Surge Amid Beijing Hoarding

Gold's price potential remains 'explosive' amid strong demand from Asian central banks. Deutsche Bank analysts expect the metal to reach US$4,700 per ounce by year-end, a target above their previous forecast of US$4,600. The bank attributes this growth to rising official demand, which has reached a record US$45 billion in the second quarter.

The trend of unreported gold purchases continues, with analysts noting that the substantial component remains in place. State Street Investment Management also forecasts a price target of US$5,000 per ounce by the end of this year or early 2027. This optimism is fueled by robust buying from China and continued central bank demand from emerging markets.

The Shanghai Gold Exchange has pledged to strengthen ties between its platform and Hong Kong's market, aiming to expand international trade and cross-border settlements. The exchange also seeks to improve connectivity with the Hong Kong market, further driving up gold prices.