Central Bank Gold Buying Rebounds After March Selloff

What happened: Central banks rebounded from March's selloff, increasing gold purchases in April. The World Gold Council's 2026 Central Bank Gold Reserves Survey revealed a record 45% of respondents plan to boost their gold reserves in the next 12 months. This shift follows a trend of central banks storing gold bullion at home, with geopolitical risks driving this safe-haven asset demand.

Market impact: Gold prices surged, benefiting gold miners like Barrick Gold and Newmont. Central banks' increased demand tightens gold supply, pushing prices higher. This trend also strengthens the USD, as safe-haven demand boosts U.S. Treasury yields.

What to watch next: Gold's performance hinges on geopolitical tensions and central bank actions. Upcoming catalysts include the U.S. Federal Reserve's interest rate decision on June 15, which could impact gold's safe-haven status, and the World Gold Council's quarterly demand trends report, due in late July, providing further insight into central bank buying patterns.