Is the real reason for the rise in gold prices central banks gold purchases?

 

While central‑bank gold buying has underpinned the broader uptrend in 2025, it was not the primary driver of yesterday’s one‑day jump. In fact, central‑bank purchases have slowed recently, not picked up: Q1 official-sector buying fell 21% year‑on‑year to 243.7 t since high prices curbed demand 

Yesterday’s rally was instead fueled by:

• A softer U.S. dollar, which fell about 0.2%, making gold cheaper for overseas buyers

• Safe‑haven flows on renewed trade‑war jitters after the 100% film‑tariff surprise, pushing investors into bullion

• Fed‑rate‑pause expectations, as markets priced in no change at the May 7 policy meeting, boosting non‑yielding assets like gold