Gold Prices Stabilize Amid Central Bank Buying and Rising Yields

Gold prices have stabilized at around $4,303 an ounce after a tough week, driven by rising US interest rates and higher bond yields.

The Federal Reserve's rate hike last week has led to a surge in long-term Treasury yields, making gold less attractive as an investment option compared to other assets that offer real returns.

However, central banks have continued to accumulate gold reserves, with net purchases totaling 289 tonnes in the second quarter of 2026, according to the World Gold Council.

This steady accumulation has acted as a shock absorber, preventing the sell-off from turning into something deeper and helping gold hold up relatively well despite the higher yields.