Commodities
Central Banks Boost Gold Demand Amid Hawkish Fed Signals
Gold prices plummeted 3.2% on Friday to $4,454.60 per ounce after Fed Chair Kevin Warsh's hawkish remarks at the Jackson Hole symposium.
The market had previously priced in falling real interest rates, but Warsh's comments reversed this narrative and led to a sell-off that extended into the following week.
However, beneath the surface of daily price volatility lies a structural demand story. Central banks purchased a net 288.9 tonnes of gold in the second quarter of 2026, up 62% from the same period last year.
The World Gold Council confirmed that Poland led the buying with 51 tonnes, while China's central bank added 33 tonnes to its reserves.