Gold Prices Rebound as Central Banks Boost Buying Amid Fed Uncertainty

Gold prices have recovered more than 6% from their 2026 low, thanks to a combination of factors including a divided Federal Reserve that chose not to raise interest rates and escalating tensions in the Middle East.

The Fed's decision, which was far from unanimous with three members voting for a quarter-point hike, removed a headwind that had been weighing on gold prices.

Central banks worldwide have also stepped up their purchases of gold, buying 289 metric tons in the second quarter of 2026. This brings the pace of official-sector buying back to elevated levels seen over the past four years.

The yellow metal traded at $4,136.10 an ounce on Thursday, still down more than 26% from its 52-week peak of $5,626.80.