Gold Prices Surge on Central Bank Buying Spree

The price of gold has seen a significant increase in recent weeks, reaching $4,379.95 on Friday, August 15, 2026. This marks an almost 10% rally since its low point in late June.

The surge in demand for gold is largely driven by central banks' purchases, which reached an unprecedented 289 tonnes in the second quarter. According to Deutsche Bank AG, these acquisitions totalled $45 billion, with 45% of reserve managers surveyed intending to increase their gold holdings over the next year.

LGT's analysts expect gold prices to reach $4,700 at six months and $5,000 at 12 months, based on current trends. However, they note that elevated real yields pose a significant risk to gold's recovery, as do higher oil prices and reduced geopolitical tensions.