Central Bank Gold Buying Hits Record High Sustaining Institutional Demand

Gold (XAU) is currently trading at $4,176, up 0.86% for the day. While it sits above short-term moving averages on the H1 chart, it remains below longer-term averages on the daily timeframe.

Central banks and official institutions made a record purchase of 289 tonnes of gold in Q2 2026, a 62% increase from the previous year’s 177.9 tonnes. This surge in demand is tightening market supply and sustaining institutional interest, even as prices fluctuate modestly.

Technically, gold is showing mixed signals. On the H1 chart, it trades above the MA-20 and MA-50 levels but below the long-term MA-200. The RSI indicates a buy signal, but other indicators like Stochastic RSI, CCI, and Bull/Bear Power suggest overbought conditions. The MACD and ADX remain neutral, while the Awesome Oscillator does not support the current trend.

Analysts expect gold to trade within a $4,154 to $4,198 range over the next 2-3 sessions, with a 61% probability of an upward move. A sustained breakout above resistance could signal further gains, while a drop below support might trigger a bearish scenario. Earlier, gold faced pressure from elevated Treasury yields, though softer Fed tightening expectations and a weaker U.S. dollar provided some support.