Trimmed Gold Forecasts Reflect Shift in Market Sentiment

Gold price forecasts for 2026 have been trimmed despite central banks' record gold purchases. The London Bullion Market Association's mid-year survey shows analysts now expect an average year-end price of $4,500 per ounce, down from earlier predictions.

The Fed's response to US inflation data is the primary concern among analysts, with 10 citing this as their top worry. Central bank buying has been significant, with China and Poland leading the charge in Q2. The People's Bank of China purchased 33 tonnes, while Poland bought 51 tonnes, its largest purchase on record.

Gold prices have risen to $4,411 per ounce after softer US jobs figures eased concerns about further Fed rate hikes. However, analysts remain cautious, with only one highlighting central bank appetite as a key driver of gold demand.