Gold Holds Above $4,500 as Central Bank Buying Provides Structural Floor

Spot gold trades at $4,540/oz, consolidating after a January high of $5,595. Central bank buying remains the structural pillar, with JP Morgan estimating ~800t annually.

Emerging-market central banks continue diversifying from USD assets into gold. WGC expects buying to continue and potentially accelerate.

Fed held rates at 3.50-3.75% in April. Markets scaled back cut expectations as inflation remains sticky at 3.3% CPI.

March CPI reached 3.3% after the Strait of Hormuz disruption. PIIE warns inflation could exceed 4% by end-2026.

Central bank demand floor remains intact. Any Fed pivot toward cuts would push gold toward $5,000-5,500.

What this means for buyers

Central bank demand floor remains intact. Any Fed pivot toward cuts would push gold toward $5,000-5,500.