Gold Plunges 26% Yet Central Banks Buy 289 Tons… The Gold Price Outlook Is Unsettled

From $5,405 to the $4,000 Range: Three Economic Signals Sent by the Correction Phase International gold prices, which had been rising steeply, have undergone a significant correction this year. The LBMA afternoon fixing price, used as a key benchmark by the World Gold Council (WGC), climbed to $5,405 per ounce on January 29 before falling to $4,001.80 on June 25. The adjustment from the peak is approximately 26%. Although prices have since rebounded, the amplitude of the rise and fall seen in the first half of the year makes it difficult to view the gold market merely as a fluctuation in safe-haven asset prices. The movement of gold prices simultaneously reflects not only the inflow and liquidation of short-term investment funds but also interest rate outlooks in the U.S. and other major economies, the value of the dollar, reserve asset management by central banks, and geopolitical uncer…