Gold Rises on Official Buying and US Treasury's Bond Strategy

Gold's price continues to rise, propelled by two key factors: official buying and the US Treasury's bond strategy.

The World Gold Council and Deutsche Bank report that central banks added a record 289 tonnes of gold in the second quarter of 2026. Poland's central bank led the charge, expanding its reserves by 82 tonnes in the first half of the year, while China added 40 tonnes.

Futures traders are also increasing their bullish bets, with net-long positions in gold futures climbing to 222,200 contracts from 217,900 the prior week, according to the CFTC's Commitments of Traders report dated August 18. This is a signal that momentum players see further upside ahead.

The US Treasury's announcement of an expansion of its buyback program for long-dated government bonds sent yields lower and weighed on the dollar. Gold responded with a gain of more than 4 percent in a single session on Friday, settling at $4,661.60 an ounce, up 1.9 percent on the day and the highest close in over three months.

The rally has followed a choppy path, but analysts say that the combination of patient buyers accumulating bullion for the long haul and fast-money traders piling into futures with renewed conviction explains why gold keeps pressing higher even after reaching territory that might once have triggered profit-taking. Producers are reaping the rewards, with miners such as Barrick Mining posting adjusted net income of $1.36 billion for the second quarter of 2026, a 70 percent year-on-year increase.