Gold Holds Steady Near $4,400 Amid Central Bank Buying

Gold prices have been steady near $4,400, according to The Gold Forecast. This stability comes despite weak US demand in Q2, which fell to just 8 tonnes, well below the 10-year quarterly average of 90 tonnes.

The decline was driven mainly by outflows from U.S.-listed gold ETFs, with June seeing a 40-tonne drop compared to a combined 4-tonne decline in April and May. However, excluding these two discrete liquidation episodes, US gold-backed ETFs would have recorded 65 tonnes of net inflows in H1.

Central bank buying provides a durable demand floor, with record institutional purchases of 289 tonnes in the second quarter. This combination of factors creates a more layered demand profile than in the first half, when the market was weighed down by concentrated ETF outflows against an otherwise supportive backdrop.