Gold's volatile 2026 ride may continue, driven by Fed expectations and central bank buying
Gold has seen significant swings this year, hitting a record high of approximately $5,589 an ounce on January 28 before falling over 18%. The metal recently posted its best week since January, gaining more than 7%, as weaker-than-expected jobs data and tamer inflation readings reduced expectations for a September Federal Reserve rate hike. Central banks, led by China, continue to add to their gold reserves, with the PBOC adding 19.9 tons in July, marking its 21st consecutive month of accumulation. Billionaire hedge fund manager John Paulson and Goldman Sachs also anticipate a longer rally, with Goldman expecting central banks to purchase roughly 60 tonnes of gold monthly through 2026.
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