Central Banks Fuel Gold Price Stabilization Amid Strong Demand

Gold prices have stabilized above their key moving averages, indicating a constructive position in the short to medium term. According to recent data, global central banks purchased a record 289 tonnes of gold in Q2 2026, solidifying gold as a preferred reserve asset.

This accumulation has provided strong demand-side support, reinforcing gold's position among sovereign institutions. The influx of nearly $2 billion from ETF investors during the same period increased market liquidity and strengthened overall sentiment.

The technical setup for XAU remains positive, with momentum indicators issuing buy signals. The RSI sits at 63.33, accompanied by bullish or overbought readings in Stochastic RSI and CCI. A higher probability (70%) is expected for upward movement within the defined trading range of $4,342 to $4,406.