Gold expected to hit fresh records as central banks ramp up buying - AMWatch

Central bank demand has become a key pillar of the gold market, and AMWatch reports that this buying is expected to push prices to fresh records. Unlike short-term speculative flows, official-sector purchases tend to be strategic and less price-sensitive, which can provide a steadier source of support for the metal than retail or ETF demand alone.

The development matters because it reinforces gold's role as a reserve asset. When central banks add to holdings, they are typically diversifying reserves or seeking assets that sit outside any single currency system. That framing can influence how investors interpret gold's longer-term store-of-value appeal, even if day-to-day prices remain driven by rates, the dollar and broader risk sentiment.

What to watch: whether the pace of official buying persists in coming quarters, and whether it is matched by ETF inflows or jewellery demand. Also worth monitoring is how the market reacts if prices reach new highs — record levels can attract momentum buyers but may also prompt profit-taking, so the durability of any rally will depend on whether underlying demand holds.