Central Banks Power Up Gold Market as Retail Investors Step Back
Gold's price has been impacted by several factors in recent days, including diplomatic developments and Federal Reserve policy. On Monday, gold traded at $4,107.00 per troy ounce, up 0.20 percent from Friday's close of $4,098.60.
The immediate catalyst for the metal's slide on Friday was President Trump's announcement that he had halted planned strikes on Iran and that fresh talks with Tehran would begin Monday. This diplomatic thaw is a mixed bag for gold, as lower oil prices ease inflation expectations and reduce the case for further Fed tightening, but also diminish the safe-haven premium.
Despite this, gold remains a popular choice among central banks, which have been buying up the metal at an unprecedented pace. The World Gold Council reports that central banks bought a net 289 tonnes in the second quarter, up 62 percent year on year and the largest quarterly accumulation since Q4 2024.
Tether, the stablecoin issuer, also purchased 14 tonnes of gold in Q2 and now holds over 146 tonnes valued at roughly $18.8 billion.