Gold Hits Record High as Central Banks Boost Reserves -

Gold prices soared to a new record above $2,600 per ounce after multiple central banks reported stronger-than-expected increases in bullion reserves. The data, published through the World Gold Council, showed that emerging-market central banks collectively purchased 87 tonnes in October alone, fueling renewed bullishness in the precious metals market.

Why Central Banks Are Buying More Gold

Several drivers shaped this historic accumulation wave.

Geopolitical tensions intensified in several regions, prompting central banks to diversify away from U.S. dollar–denominated assets. Additionally, persistent inflation in many economies heightened the appeal of gold as a long-term value preservative.

A research note from Summit Commodities highlighted that “reserve managers are increasingly concerned about currency fragmentation and are using bullion to hedge geopolitical and financial-system risks.”

Moreover, weakening U.S. Treasury yields—partly due to expectations of monetary easing—boosted gold’s relative attractiveness. The U.S. 10-year yield briefly dipped below 3.8%, its lowest level since April.

Market Ripples Across Commodities and Currencies

The immediate market reaction was pronounced.

Gold miners jumped sharply on global exchanges, while silver prices rallied to a six-month high. The GDX gold-miner ETF rose nearly 5% intraday, benefiting from the surge in bullion prices.

In currency markets, traditional safe-havens strengthened. The Japanese yen appreciated, and the Swiss franc reached a two-month high against the U.S. dollar. Meanwhile, commodity-linked currencies such as the Australian dollar also gained due to rising metal export expectations.

Spot trading volumes in gold futures on the CME spiked 40% above the monthly average, underscoring heightened investor participation.

What This Means for the Long-Term Outlook

If central-bank demand remains elevated, structural support for gold could persist well into 2026. Analysts warn, however, that short-term corrections are likely if speculative positions become overstretched.

The long-term bullish argument rests on two pillars: