Central Banks Buy Gold Amid Geopolitical Volatility

Gold prices have surged to $4,294.60 following President Trump's suggestion of a potential deal to reopen the Strait of Hormuz by as early as Wednesday.

The diplomatic breakthrough has injected fresh momentum into a market that had spent the previous week drifting sideways above $4,100.

However, beneath the geopolitical headlines lies a more structural story: central banks have been buying gold in large quantities.

In the second quarter, they purchased 288.9 tonnes of gold, a 62.4% increase from the same period last year and the highest Q2 figure on record, according to the World Gold Council's latest 'Gold Demand Trends' report.