Gold prices maintained their upward trajectory on Friday, with COMEX futures settling above $4,088/oz. The rally comes amid renewed safe-haven demand driven by escalating trade tensions and uncertainty around global growth trajectories.
The Federal Reserve’s dovish pivot has been a primary catalyst. Markets are now pricing in two rate cuts by year-end, which weakens the dollar and reduces the opportunity cost of holding non-yielding bullion. The dollar index (DXY) fell 0.4% on Friday, extending its weekly decline.
Central bank demand continues to provide a structural floor under gold prices. Data from the World Gold Council indicates that global central banks added 285 tonnes of gold to reserves in Q2 2026, led by China and India. This pace of institutional accumulation is on track to match or exceed 2025’s record levels.
ETFs tracking gold saw net inflows of $3.2 billion this week, the largest weekly intake since March 2024. The SPDR Gold Trust reported a 1.8% increase in holdings on Friday alone.
Gold’s persistent strength above $4,000 signals that the safe-haven premium is structural, not cyclical. Buyers with precious metals exposure in their supply chains should consider locking in forward pricing for H2 2026, particularly if the dollar weakens further. The central bank buying spree removes significant above-ground inventory from accessible markets.