Gold Prices Soar to Records Amid Central-Bank Demand
Gold prices have surged to records in 2026, reaching $4,674 per ounce as of late August. This marks a significant increase from the prior year, with prices up roughly 40% over the past twelve months and more than 25% since the start of 2025.
The rise in gold prices is attributed to several factors, including central-bank demand. Official-sector buyers have doubled their annual purchases since 2022, from around 500 tonnes a year to more than 1,000, as reserve managers diversify away from the US dollar due to sanctions-related concerns.
Gold producers listed on the Toronto Stock Exchange (TSX) are also benefiting from the higher prices. Companies such as Agnico Eagle Mines and Barrick Mining have reported record quarterly earnings, with margins expanding significantly as a result of the price increase.
The royalty and streaming model is another way to play the gold theme, with companies like Franco-Nevada and Wheaton Precious Metals providing upfront capital to producers in exchange for a percentage of future revenue. These companies are largely insulated from cost inflation and their margins expand almost mechanically as gold rises.