Central Bank Buying Creates $4K Price Floor for Gold

Gold prices have corrected sharply over September after hitting historic all-time highs near $5,608.35 in January 2026.

The recent drop of roughly 6% has pushed gold to a seven-week low near the $4,110, $4,150 range due to increased opportunity cost of holding non-yielding assets like gold with multi-decade-high US Treasury yields.

Market expectations for Federal Reserve policy remain volatile following mixed signals and stubborn inflation data, which has strengthened the U.S. dollar and weighed heavily on bullion.