Gold Prices Surge 9% to Reach $4,400 Amid Central Bank Buying

Gold prices have been on an upward trend since August, rising by approximately 9% to reach around $4,400 per ounce. This marks a recovery in demand for the precious metal as a safe-haven asset, according to recent data.

The price of gold had fallen below $4,000 in June after reaching a historic high of approximately $5,595 in January. However, over the past few weeks, gold has broken through several key technical resistance levels and analysts note signs of major institutional buyers returning to the market.

James Steel, HSBC's chief precious metals analyst, suggested that the scale of the recent rally may indicate increased activity by central banks or sovereign wealth funds. However, there is no confirmed data on specific major buyers yet.