The importance of central bank gold purchases and demand from Asian investors continues to rise, and these two types of funds do not necessarily follow changes in US interest rates, the dollar, and inflation entirely. This does not mean that real interest rates have become ineffective, but rather that the pricing drivers for gold have become more diversified. In the short term, rising yields may still create pressure; however, if tight policies ultimately lead to problems in growth, inflation, or some part of the financial system, causing long-term yields to fall, coupled with central bank and Asian demand, gold may still find support, although it may not repeat the excessive gains of 2025.
