Gold Prices Soar as Central Banks Boost Buying Amid Rate-Hike Uncertainty

The price of gold rose to $4,401.40 per troy ounce on Friday, marking a 7.39% weekly increase that is its strongest performance in months.

This gain followed disappointing US jobs data, which led to a recalibration of expectations for Federal Reserve policy and reduced rate-hike bets, making gold a more attractive hold.

However, the market's demand picture is split between official-sector buyers and Western investors. Central banks have been accumulating bullion at a record pace, with net purchases reaching 288.9 tonnes in Q2 2026, a 62% jump from the same period last year.

In contrast, gold-backed exchange-traded funds have seen sustained outflows of $14.4 billion since March 1, 2026, with 32.9 million shares redeemed during the second quarter.