Central Banks Fuel Gold Price Rally Amid Rising Interest Rates

Gold prices are expected to continue their upward trajectory, supported by central bank purchases worldwide. According to Pawan Nawawattanasub, CEO of YLG Bullion International Co., Ltd., 'gold prices remain in an upward cycle.'

The largest gold-holding nation is the United States, with 8,133.5 metric tons, accounting for 84% of its reserves. Uzbekistan ranks first among countries with high gold reserve ratios, at 86-87%, followed closely by Germany and France.

China has been increasing its gold holdings, importing over 1,000 metric tons from the start of the year through August, exceeding its total imports for all of 2025. However, gold still only accounts for about 5% of China's total reserves.

YLG assesses that central bank accumulation is not the only factor driving up gold prices, with interest rates and yields on other assets also playing key roles. The recent pullback in gold prices reflects profit-taking triggered by rising U.S. Treasury yields, but the long-term trajectory remains upward.