Gold rebounded strongly in August, gaining about 9.4% over the month before a correction at the end of August and in early September. The rise was supported by weaker US economic data, a softer dollar, changing expectations for Federal Reserve policy and renewed inflows into gold-backed ETFs.
According to the World Gold Council, the LBMA Gold Price PM rose 9% during the first two weeks of August to USD 4,391 per ounce. Gold futures also gained more than 9.3% over the month.
Central banks remain a major source of demand
Central-bank purchases continue to support the market. World Gold Council data show net buying of 289 tonnes in the second quarter of 2026, up 62% year on year and five times the level recorded in the first quarter.
The National Bank of Poland was the largest reported buyer in Q2, adding 51 tonnes to its reserves. The People’s Bank of China added 33 tonnes during the quarter. Across the first half of 2026, central banks bought a net 345 tonnes.
Investment demand is not limited to institutions. Global demand for bars and coins exceeded 307 tonnes in the second quarter, broadly in line with the same period a year earlier.
Gold remains sensitive in the short term to interest-rate expectations, bond yields and central-bank communication. Its long-term appeal, however, continues to be linked to reserve diversification, geopolitical risk and demand for assets perceived as stores of value.
This article is for information purposes only and does not constitute investment advice. Source: Newseria / World Gold Council.
