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The Emirates News Agency reported that gold holds steady near one-week high as traders maintained a cautious stance while monitoring developments in monetary policy and key indicators scheduled for release this week. Spot gold showed little movement in Asian trading hours following a modest gain in the prior session, with the metal benefiting from its safe-haven status amid lingering uncertainties over global growth prospects. This steadiness follows a period of sharp swings earlier in 2026 during which prices reached intraday records above $5,500 per ounce before pulling back substantially.
World Gold Council figures show total demand including over-the-counter activity held unchanged year-on-year at 1,269 tonnes in the second quarter of 2026. First-half demand climbed 2 percent to 2,522 tonnes while achieving a record value of $380 billion on the back of elevated prices. Central banks added 289 tonnes in the April-to-June period after a slowdown in the first quarter, helping to underpin the market.
Bar and coin investment remained essentially flat at 307 tonnes in the second quarter according to the council’s quarterly demand trends report released in July. Jewellery demand dropped to 278 tonnes its lowest since the pandemic as sustained high prices weighed on consumer affordability in key markets. The council expects investment demand to lead growth in the second half supported by over-the-counter flows and buying in Asia.
A mid-year outlook published by the World Gold Council on July 1 projected that gold would likely trade in a relatively narrow range around $4,100 per ounce for the remainder of 2026 absent major catalysts. Upside potential to $4,500 or higher could materialise from renewed economic weakness geopolitical shocks or shifts in rate expectations while long-term investor inflows might also provide support. The analysis noted that current bond market pricing and consensus forecasts point to further rate increases by major central banks including the Federal Reserve before year-end.
Market analysis published by FX Empire on September 19 found spot gold had rallied 0.84 percent to settle at $4,378.385 the previous Friday with the session high reaching $4,399.67. Momentum indicators had turned higher after the price crossed above its 50-day moving average at $4,288.76 although the primary daily trend remained down. A decisive move above resistance at $4,405.59 would target $4,466 and potentially $4,520 while a failure could hand control back to sellers.
Several major banks adjusted their gold price forecasts lower in June citing the prospect of higher interest rates for longer and reduced near-term investor appetite. JPMorgan cut its full-year 2026 average forecast to $5,243 per ounce from a previous $5,708 while keeping a fourth-quarter directional target at $6,000. Goldman Sachs revised its end-2026 projection down by $500 to $4,900 per ounce though it retained a longer-term bullish view.
Central bank purchases are projected to stay robust for the full year though below the 2025 peak according to World Gold Council projections. Chinese jewellery consumption slumped 34 percent in recent months prompting producers to target markets in the Middle East and India with advanced techniques such as hard pure gold a September 21 report in the South China Morning Post cited Wang Lixin China CEO of the council as saying. Overall supply remained steady in the second quarter with a 2 percent rise in mine production offsetting reduced recycling.
