Gold Prices Surge Above $4,600 as Central Banks Boost Purchases
Gold prices have rebounded above $4,600 an ounce, and silver has delivered strong gains. The rally has been supported by falling US Treasury yields and a weaker dollar after the US Treasury announced larger purchases of longer-dated government bonds.
The lower yields reduce the opportunity cost of holding gold, while fiscal concerns are strengthening the currency-debasement argument. Central banks bought 288.9 tonnes of gold in the second quarter of 2026, up 411% quarter-on-quarter.
Market estimates suggest that the correction has not broken the broader precious-metals thesis. Gold supply has shown a limited response to higher prices, with mine production rising by just 2%, and recycled gold falling 6%. Total supply remained flat at $31 trillion, compared with $102 trillion of major central-bank money supply and roughly $350 trillion of global debt.