Gold prices rose above 2,650 dollars per troy ounce this week, approaching the all-time nominal high set last year. The sustained rally is being driven by a combination of central bank purchases, investor safe-haven demand amid geopolitical uncertainty, and growing interest from retail investors using exchange-traded funds as convenient exposure vehicles.
Central bank gold purchases have been particularly notable, with China, Poland, India, and several Middle Eastern sovereign wealth funds significantly expanding their gold reserves over the past 18 months. Analysts attribute the trend to a deliberate effort to diversify away from dollar-denominated reserve assets following the use of dollar-based financial sanctions against Russia. The trend appears durable regardless of short-term price movements.
