Gold experienced a volatile first half of 2026, with a spike in late January followed by a sharp decline to below $4,100, representing a mid-single-digit decline on the year but still up almost 25% year over year. The correction is attributed to a natural pullback in speculative investment, while fundamental demand from central bank buying remains a key long-term driver. In the first quarter of 2026, ETF demand fell by 65 metric tons from the end of 2025, but net central bank purchases improved, with JPMorgan Chase noting that China appears to be ramping up gold purchases. The bullish outlook hinges on continued central bank diversification away from U.S. debt amid rising U.S. debt levels and geopolitical tensions, with any price weakness expected to encourage jewelry demand and eventually stabilize the market. Investors are advised to consider buying into significant price declines in gold, gold ETFs, or gold miners such as Newmont.
Newmont Goldcorp CorpCentral bank buying supports gold demand, benefiting gold miners like Newmont.