Gold Prices Soar 11% Amid US Economic Shift and Central Bank Buying Spree

Gold prices have rebounded by approximately 11% since the beginning of August 2026, reaching around $4,400 per ounce.

This surge comes after a challenging period in the first half of 2026 when gold prices fell from their January record of $5,586 to stabilize at $4,000 per ounce.

The rebound is attributed to moderating inflation and weaker labor market data in the US, which have cooled expectations of interest rate hikes by the central bank.

Lower expected real interest rates have strengthened the outlook for gold, making it a more attractive safe-haven asset.

Central banks around the world have accelerated their demand for gold, buying five times more in the second quarter than in the first. A record 45% of central banks expect to increase their gold reserves over the next 12 months.