Gold Soars on Central Bank Buying, But ETF Investors Flee

The price of gold has surged by 7.39% in the past week, closing at $4,401.40 per troy ounce on Friday.

This marks its strongest performance in months and is a result of disappointing US jobs data in mid-week, which led to a recovery from earlier this year.

However, beneath this headline strength lies a more nuanced market picture, with official-sector buyers accumulating bullion at a pace not seen in years while Western investors are quietly exiting gold-backed exchange-traded funds in size.

A key driver of the rally is the softening US economy and central banks' relentless buying, which has led to net purchases reaching 288.9 tonnes in Q2 2026, a 62% jump from the same period a year earlier.