Central Banks Sustain Gold Demand Amid Fed Uncertainty

Gold prices have steadied or slipped slightly as investors await the U.S. Federal Reserve's policy decision, with the market anticipating no immediate rate changes but closely watching for future guidance. A World Gold Council survey indicates that 95% of central banks expect global gold reserves to rise over the next year, with 43% planning to boost their own holdings and many foreseeing a declining share of U.S. dollars in reserves within five years. Central banks have accumulated over 1,000 tonnes of gold annually for three consecutive years, far surpassing the previous decade's average. Persistent geopolitical tensions, particularly the Israel-Iran conflict, and safe-haven demand are supporting gold’s appeal. Silver has reached a 13-year high, driven by strong industrial demand and supply deficits. Analysts forecast that continued central bank buying and ETF inflows could push gold to new highs by 2026.