Gold Stabilizes at $4,600-$4,700 as Central Banks Fuel Demand Ahead of Warsh Speech

The price of gold has been oscillating between $4,600 and $4,700 in recent sessions as traders position themselves ahead of a crucial speech by Federal Reserve Chair Kevin Warsh. Central banks have become significant players in the gold market, with institutions adding a net 288.9 tonnes of gold in the second quarter, a 62 percent jump year-on-year.

Poland led the charge with 51 tonnes, while China's central bank acquired 33 tonnes in its largest quarterly purchase since late 2023. The World Gold Council's data shows that 45 percent of central banks intend to add more gold over the coming year, the highest reading since 2018.

The US Treasury's decision to expand its purchases of long-dated bonds has fueled concerns about gradual currency debasement, providing an additional tailwind for gold. The metal has climbed roughly 14 percent over the past 30 days and is up about 10 percent in August alone from a starting point near $4,000.