Gold Breaks Out of Downtrend as Central Bank Buying and Asian Demand Soar

Gold has broken out of its downtrend that began in late January 2026. According to BIT Research, this breakout is significant and signals further upside for the metal.

The technical breakout comes as central bank buying continues to provide support for gold. In Q2 2026, central banks purchased a net 288.9 tonnes of gold, the highest Q2 level on record and up 62% from 177.9 tonnes a year earlier. The National Bank of Poland was the largest buyer in Q2, adding 51 tonnes, followed by the People's Bank of China with 33 tonnes, its largest quarterly increase since Q4 2023.

Asian gold demand remains strong, with China and India accounting for around 45% of global jewelry demand. In the first half of 2026, mainland Chinese bar and coin demand reached 314 tonnes, the strongest first-half performance on record.