Central Banks Fuel Gold Demand Amidst Retail Retreat

The gold market is experiencing a two-track trend, where central banks are buying at a record pace while traditional retail buyers step back.

According to the World Gold Council's second-quarter demand report, global gold demand remained steady year-over-year at 1,269 tonnes, but first-half demand rose 2 percent to 2,522 tonnes, valued at $380 billion.

Central banks are leading the charge, with Poland buying 51 tonnes and China importing 33 tonnes. Russia, on the other hand, sold 22 tonnes during this period.

The World Gold Council's survey of central banks indicates that they expect global reserves to continue growing, with 89 percent expecting an increase and 45 percent actively planning to add to their holdings.