Central Bank Buying Sends Gold Price Soaring Amid Supply Constraints

Gold's price is rising due to an unusual surge in central bank buying and supply constraints. In the second quarter, net central bank purchases reached a record 288.9 tonnes, with Poland leading the charge at 51 tonnes. China's central bank added 33 tonnes during this period.

The World Gold Council found that 45% of the 74 central banks polled plan to increase their gold holdings further, with Poland aiming for a target of 700 tonnes in reserves.

Ghana's decision to ban unrefined gold exports starting September 1 will also reduce global supply. The country is among the world's significant gold producers, and this move directly impacts international refining channels.