Gold Breaks Through $2800 to Record High! Global Central Banks' Continued Purchases Drive New Wave in Precious Metals Market
On July 24, 2026, international spot gold prices surged past the $2800/oz mark during New York trading, hitting a record high of $2,812.30, surpassing the previous record set in 2024. At press time, gold was quoted at $2,805/oz, up 1.8% intraday. Meanwhile, silver climbed to $38.50/oz, platinum hit $1,050, and palladium rebounded to $980. The precious metals market saw a broad rally, drawing global investor attention.
Multiple Drivers Behind the Surge
A key driver was continued central bank purchases. According to the World Gold Council, net central bank gold purchases totaled 285 tonnes in Q2 2026, up 12% quarter-on-quarter, led by the People's Bank of China, the National Bank of Poland, and the Monetary Authority of Singapore. These purchases not only provided market support but are seen as a structural shift away from dollar reserves.
Geopolitical risk premium was also a factor. Recent tensions in the Middle East and escalating US-EU trade frictions intensified risk aversion. Capital flowed heavily into gold ETFs, with the world's largest gold ETF, SPDR Gold Shares (GLD), posting net inflows exceeding $1.5 billion over July 22-24, the largest weekly inflow since 2024.
Additionally, persistently high US inflation boosted gold. The Labor Department reported June core PCE rising 2.8% year-over-year, above the 2.7% forecast. Fed Chair Powell hinted at a lower chance of rate cuts this year, pushing real rate expectations down and enhancing gold's appeal. Goldman Sachs analysts noted that gold's pricing logic has shifted from the traditional real rate framework to a "new paradigm" of central bank buying and geopolitical risk.
Silver, Platinum Follow; Industrial Demand and Investment Attributes Converge
Silver broke above $38, its highest since 2021, driven by gold. Silver has both industrial and investment attributes: global solar photovoltaic demand for silver remained strong, with silver usage in the sector up 18% year-over-year in the first half of 2026; meanwhile, silver ETF holdings also climbed, and speculative net long positions hit the second highest ever. UBS Wealth Management expects silver to further test $40 in the next six months.
Platinum and palladium benefited from a recovery in automotive catalyst demand. With global auto production and sales rebounding, especially the extension of China's NEV purchase tax exemption, demand for platinum group metals improved. However, power supply issues in major South African mining regions limited supply, pushing platinum above $1,050. Analysts noted that the platinum-palladium spread has widened to $70, offering arbitrage opportunities.
Institutional Outlook: Bull Market Continues, But Correction Risks Loom
Looking ahead, many institutions maintain a bullish stance on precious metals. JPMorgan upgraded its year-end 2026 gold target to $3,000, arguing that central bank buying will not reverse and emerging market currency depreciation will continue to boost gold demand. Citibank expects silver to catch up to gold's relative gains by 2027.
However, short-term risks cannot be ignored. Gold's RSI has entered overbought territory (daily RSI 78), and profit-taking pressure near the $2,800 level is significant. Bank of America Merrill Lynch strategists suggested that if US GDP data next week beats expectations, gold may pull back to $2,750 for support. Investors may consider buying on dips or hedging volatility with options strategies.
Overall, amid continued central bank buying, geopolitical risks, and inflation expectations, the precious metals market is in a new structural bull market. For Thai and ASEAN investors, participation can be via SET-listed gold ETFs (e.g., GLD-ETFs) or Singapore precious metals trusts, while diversifying into silver and platinum to capture rotation opportunities.
