Gold Price Crashes to Lowest Level Since August Amid Central Bank Buying Surge

The gold price has dropped to its lowest level since early August, trading around $4,174 per ounce. This decline comes despite evidence that central banks are accumulating more gold than officially reported.

Goldman Sachs estimates suggest that global central bank purchases in July were 44 tonnes, which is 158% higher than the pre-2022 average of 17 tonnes. In contrast, official reported purchases totaled only 23 tonnes in July, leaving a significant gap.

The discrepancy between estimated and actual purchases raises questions about the accuracy of official statistics on sovereign gold demand. If central banks are indeed buying more gold than reported, it could indicate stronger underlying physical demand for the metal.