Gold Prices Surge Amid Central Bank Buying Spree

Gold prices have surged by about 15% in recent months, increasing from nearly $4,010 per ounce in mid-July to around $4,600 on August 27. According to Heraeus Precious Metals, this uptrend is not unexpected as precious metals often see a period of accumulation following a strong increase.

The latest price movements have raised questions about whether the prolonged correction has ended. However, experts at Heraeus believe that the long-term upward trend of gold is still maintained, citing the fact that gold prices have surpassed their 200-day moving average and this average remains trending upwards.

Despite a significant decline in investor interest, with gold bar and coin sales decreasing by 36% in Q2/2026 compared to Q1, Heraeus believes this may be a precursor to a new rally. Market history shows that gold prices tend to recover when investment sentiment becomes cautious or even pessimistic.

Central banks continue to buy gold, with a WGC survey revealing they purchased 345 tons in the first half of 2026, which is likely higher than the average over the past 15 years. This buying activity is seen as one of the key factors supporting the long-term outlook for gold.