The World Gold Council said on Aug 6 that central bank purchases and Asian investor demand are becoming increasingly important for gold pricing. These flows do not necessarily follow US rates, the dollar, or inflation. The council said this does not mean real interest rates have lost their effect; instead, gold's pricing drivers have become more diversified. In the near term, rising yields can still pressure gold. But if tight policy eventually causes problems in growth, inflation, or some part of the financial system, longer-term yields could fall. With central bank and Asian demand, gold could still find support - just not necessarily repeat 2025's outsized gains. (Source: Jinshi)
The World Gold Council said on Aug 6 that central bank buying and Asian investor demand are playing a growing role in gold pricing. These two types of flows do not necessarily move in lockstep with US interest rates, the dollar, or inflation.
The council noted that real interest rates have not stopped working; rather, the drivers of gold pricing have become more diversified. In the near term, rising yields could still create pressure. But if tight policy eventually causes problems in growth, inflation, or some part of the financial system, long-term yields could fall. Combined with central bank and Asian demand, gold may still find support - though it might not repeat the outsized gains seen in 2025.
Source: Jinshi.
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