Gold Prices Soar Above Moving Average on Central Bank Buying and Sliding Yields

Gold prices have recovered and are now trading above their 50-day moving average after a brief wobble in mid-week. The metal has climbed 2.8% since the Federal Reserve's latest policy move, with analysts pointing to the retreat in long-dated Treasury yields as a key factor.

The 10-year note had pushed past the 5% mark earlier in the week but eased back to around 4.93% by Thursday. This drop has given gold a clear lift, as it pays no coupon.

JPMorgan is predicting that gold will reach $4,500 by year-end, while other research houses also expect the advance to continue and fresh records to fall before the calendar turns.

Central banks have been steadily buying gold over the past year, with official purchases becoming a structural feature of the market rather than a passing trend. This has provided a floor for corrections and made deeper slides less likely.