Gold Market Torn Between Central Banks and the Fed

The gold market is caught between two opposing forces: central banks and the Federal Reserve. Central banks worldwide purchased 288.9 tonnes of gold in the second quarter, a 62.4 percent surge from the same period a year earlier.

Poland led the pack with 51 tonnes, while China added another 33 tonnes to its holdings. Beijing's buying streak now stretches to 22 consecutive months, with reserves climbing to 76.73 million fine ounces as of August.

A World Gold Council survey of 74 central banks reinforces the point: 45 percent of institutions plan to increase their gold reserves over the next twelve months, the highest proportion recorded since 2018.