Central banks: buying gold even as rates rise

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Gold Market Context: Macro Drivers

Key macro instruments that drive gold price movements: dollar, yields, risk appetite

DXY

US Dollar Index

99.91 pts

▼ 0.16 (-0.16%)

tailwind for gold

Gold inverse — rising dollar pressures gold

US10Y

10-Yr Treasury

4.54 %

▲ 0.06 (+1.41%)

headwind for gold

Real yield pressure — higher yields weigh on gold

SPX

S&P 500

7,313.40 pts

▼ 240.28 (-3.18%)

tailwind for gold

Risk appetite — equity rallies reduce safe-haven demand

BTC

Bitcoin

62,227.77 USD

▲ 1360.36 (+2.23%)

positive for gold

Alt safe haven — moves with gold in risk-off

WTI

Crude Oil (WTI)

91.19 $/bbl

▲ 0.65 (+0.72%)

positive for gold

Inflation proxy — rising oil can lift gold

EURUSD

EUR / USD

1.16

▼ 0.01 (-0.44%)

negative for gold

Dollar strength gauge — inverse to DXY

▲ Rising DXY or yields typically pressure gold | ▲ Falling yields or geopolitical risk support gold | Live data — fetched at send time

Market Commentary

Gold Falls Further as U.S. Inflation Heats Up

Gold fell further as rising energy costs, driven by the ongoing conflict in Iran, continue to exert upward pressure on U.S. inflation. This increase in inflation typically diminishes gold's appeal as a hedge, particularly when real yields rise in response to higher price levels. Investors should note that persistent inflation can lead to expectations of tighter monetary policy, which often strengthens the dollar and further weighs on gold prices. As inflation data comes in hotter than anticipated, market participants may begin to price in more aggressive interest rate hikes from the Federal Reserve, which could lead to increased bond yields. Higher yields make non-yielding assets like gold less attractive, prompting further selling pressure. Additionally, geopolitical tensions can create volatility, but in this case, they are contributing to inflation rather than driving safe-haven demand for gold. Central bank demand remains a critical factor, but if inflation continues to rise unchecked, central banks may prioritize combating inflation over accumulating gold reserves. ETF flows could also reflect this sentiment, as investors reassess their positions in light of rising inflation and potential rate hikes. Overall, the current environment suggests that gold may struggle to find support unless there is a significant shift in inflation expectations or a reversal in monetary policy outlook.

Why Did Central Banks Spend $95 Billion to Buy up Gold?

Central banks globally purchased 863 tonnes of gold in 2025, amounting to nearly $100 billion, marking the fourth largest year for such acquisitions in over 15 years. This significant demand from central banks indicates a robust confidence in gold as a safe-haven asset amid ongoing economic uncertainties. As central banks diversify their reserves, we can expect upward pressure on gold prices, particularly as they seek to hedge against inflation and currency fluctuations. The substantial investment in gold reflects a strategic move to bolster financial stability, especially in a climate of rising geopolitical tensions and market volatility. With central banks actively accumulating gold, we should anticipate a tightening supply in the market, which could further support price increases. Additionally, this trend underscores a shift in monetary policy focus, as central banks prioritize tangible assets over fiat currencies. Investors should note that such large-scale purchases can lead to increased retail interest in gold, potentially driving ETF inflows as market participants seek to capitalize on the central banks' bullish stance. Overall, the strong central bank demand signals a long-term bullish outlook for gold, reinforcing its status as a critical asset in times of uncertainty. As we move forward, the interplay between central bank policies, inflationary pressures, and geopolitical developments will be crucial in shaping gold's trajectory.

Gold Falls to the Lowest in More Than Six Months as U.S. Inflation Rose Again in May

Gold fell to its lowest level in over six months as U.S. inflation continued to rise in May, signaling persistent price pressures that could influence monetary policy. This inflationary environment typically leads to higher interest rates, which diminishes the appeal of non-yielding assets like gold. As yields on government bonds increase, the opportunity cost of holding gold rises, prompting investors to seek returns elsewhere. Additionally, a stronger dollar often accompanies rising rates, further pressuring gold prices as it becomes more expensive for holders of other currencies. The combination of these factors has led to a notable decline in gold's attractiveness as a safe haven. Central banks may also adjust their gold purchasing strategies in response to changing economic conditions, impacting overall demand. ETF flows have likely been affected as investors reassess their positions in light of these developments. As inflation remains a key concern, we should closely monitor how central banks respond, as their actions will be pivotal in shaping gold's trajectory. In this environment, investors should remain vigilant about the interplay between inflation data, interest rates, and currency strength, as these elements will continue to drive gold prices in the near term.

Bullish for Gold: Spiking Inflation Could Send Real Yields Lower No Matter What the Fed Does

Nominal interest rates are rising, which typically exerts downward pressure on gold prices, yet the current environment of spiking inflation presents a contrasting dynamic. As inflation accelerates, it has the potential to push real yields lower, even in the face of increasing nominal rates. This scenario creates a bullish setup for precious metals, as lower real yields diminish the opportunity cost of holding gold. Investors should note that the interplay between rising nominal rates and surging inflation could lead to a scenario where gold becomes more attractive as a hedge against currency devaluation. The market is increasingly recognizing that despite the Fed's actions, the inflationary backdrop could sustain or even enhance gold's appeal. Central bank demand remains robust, further supporting gold prices as institutions seek to diversify their reserves amid economic uncertainty. Additionally, the potential for real yields to decline could stimulate renewed interest in gold-backed ETFs, which have historically responded positively to such conditions. Overall, the current inflationary pressures combined with the trajectory of nominal rates suggest that gold could find a solid footing in the coming months. As we navigate this complex landscape, the fundamental factors driving gold remain compelling, positioning it as a key asset for investors seeking stability and protection against inflation.

How Gold Price is Set: The East-West Tide Explained

Gold has historically experienced a cyclical movement between Western financial markets and Eastern physical holders, a dynamic that continues to influence its pricing today. As we observe this ongoing shift, it becomes increasingly clear that understanding the mechanisms behind gold pricing is crucial for investors. The East-West tide reflects not only the demand for physical gold in Asia but also the speculative activities in Western markets, which can create volatility. This interplay suggests that as Eastern demand strengthens, particularly in countries like China and India, we may see upward pressure on gold prices. Conversely, if Western markets dominate with bearish sentiment or rising interest rates, gold could face downward pressure. Investors should note that this cyclical nature is not merely a historical artifact but a living reality that shapes market dynamics. Central bank policies and geopolitical tensions further complicate this landscape, as they can drive both physical demand and speculative trading. As we navigate these factors, it is essential to remain vigilant about shifts in sentiment across both Eastern and Western markets. Ultimately, the evolving relationship between these two regions will continue to play a pivotal role in determining gold's price trajectory.

Gold Falls to a Six-Month Low Even as the Dollar Moves Down

Gold has fallen to a six-month low, reflecting a significant shift in market sentiment despite a weaker dollar. This decline in gold prices indicates that other factors are currently outweighing the typical inverse relationship between gold and the dollar. Investors should note that the broader market is experiencing volatility, with major indices like the S&P 500 and Dow Jones also posting substantial losses. Rising yields may be contributing to the pressure on gold, as higher interest rates diminish the appeal of non-yielding assets like gold. Additionally, geopolitical tensions and inflation concerns have not provided the usual support for gold, suggesting a shift in investor priorities. Central bank demand remains a critical factor, but current trends indicate that buying may not be sufficient to counteract the selling pressure. ETF flows are also worth monitoring, as any significant outflows could exacerbate the downward trend in gold prices. Overall, the current environment suggests that gold may continue to face challenges unless there is a notable change in macroeconomic conditions or a resurgence in safe-haven demand. As we navigate this landscape, it is essential for investors to remain vigilant and consider the implications of these dynamics on their gold exposure.

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Today's Interesting Company News

Tiger Gold Announces Closing of $21,000,000 Oversubscribed Offering of Special Warrants to Accelerate Drilling at Quinchia

(TSXV: TIGR) Tiger Gold Corp. has closed its commercially reasonable efforts offering of 25,619,351 Special Warrants at a price of $0.82 for gross proceeds of $21,007,867.82, including the partial exercise of the Agents' over-allotment option. The proceeds will be used to accelerate drilling at the Company's Ceibal target at the Quinchía Gold Project and for general working capital purposes. Each Special Warrant will be automatically exercised into units consisting of one common share and one-half of one Common Share purchase warrant, with each whole warrant exercisable at $1.20 for 36 months. The Agents received total cash compensation of $1,098,810.37 and 404,896 compensation special warrants, each exercisable for one compensation option at an exercise price equal to the Issue Price. The Special Warrants and Compensation SWs are subject to a statutory hold period expiring on October 11, 2026. The Company also plans to engage Stockchain Capital LLC for investor relations services for a cash payment of EUR 250,000, subject to TSXV approval. The company projects completion of a maiden Mineral Resource estimate for the Ceibal target near the end of 2026.

LaFleur Minerals Acquires Additional Mineral Claims to Expand Its McKenzie East Gold Project in Quebec's Val-d'Or Mining District

(CSE: LFLR) LaFleur Minerals Inc. has acquired a 100% right, title and interest in a package of 27 mineral claims totalling approximately 701.7 hectares in the Val-d'Or mining district within Québec's Abitibi Gold Belt for total cash consideration of C$35,000. The Property was acquired from an arm's-length third party via a rights purchase agreement dated May 20, 2026, and no securities of the Company were issued in connection with the acquisition. The claims are located approximately 30 kilometres northeast of Val-d'Or near Belcourt Township, in the La Vallée-de-l'Or regional county municipality of the Abitibi-Témiscamingue region of Québec, and are currently active and in good standing to June 12, 2027. Recent deep drilling at the Swanson Gold Project returned intervals including 1.18 g/t Au over 255 metres, 1.65 g/t Au over 136 metres, 2.29 g/t Au over 68.3 metres, 2.95 g/t Au over 80 metres, and 2.37 g/t Au over 88 metres. Historical grab samples from the Property reported values up to 241.8 g/t gold and 97.2 g/t silver, with a total of 78 surface samples collected in 1989 and 1990. The company projects that the upcoming drill program will target priority zones below the current resource model to support the objective of expanding the mineral resource and advancing the Swanson Gold Deposit as a long-term source of mill feed for the fully permitted Beacon Gold Mill. The Swanson Gold Project is over 200 km2 in size, and the Beacon Gold Mill is capable of processing over 750 tonnes per day.

Thistle Resources Announces Certified Assay Results of 1.65 G/t Au Over 20.71 Meters, Including 3.36 G/t Au Over 7.82m, for Drill Hole 21TRC-AU007, at Middle River Gold Project in the Bathurst Mining Camp, New Brunswick

(TSXV: TRCG) Thistle Resources Inc. announced they have received certified assay results from ALS Canada Ltd of North Vancouver, BC., for drill hole 21TRC-AU007. The drill hole was collared in the northeast extension of the mineralized folds trend at an azimuth of 150 degrees and a dip of -45 degrees, with a depth of 74 meters. The certified assay results include an overall interval from 35.00 to 55.71 meters (20.71 meters) grading 1.65 g/t Au, with sub-intervals such as 13.82 meters at 2.24 g/t Au, 7.82 meters at 3.36 g/t Au, and 2.82 meters at 4.65 g/t Au. The Middle River Gold Project is anchored by a 7-kilometre mineralized "S-Trend" of folded stratigraphy, with the current deposit representing only approximately 400 metres of strike within that trend. Drilling to date has identified a mineralized zone from surface to a depth of 130 meters, and more than 50 high-priority drill target centers have been outlined along the trend. The company projects to define more than 2,000,000 ounces of gold across the 7-kilometre trend. Thistle has received their 2026 Phase 3 Drill Program permits and plans to expand the mineralized footprint and test deeper, high chargeability targets in 2026.

Sonoro Gold Announces Closing of Oversubscribed $15.5M Private Placement

(TSXV:SGO) Sonoro Gold Corp. has closed its previously announced oversubscribed, non-brokered private placement of 62,000,000 units at $0.25 per unit, for gross proceeds of CAD $15,500,000. Each unit consists of one Sonoro common share and one common share purchase warrant, with each warrant exercisable for three years at an exercise price of CAD $0.34 per share. The Company paid $87,450 in Finder’s Fees and issued 349,800 non-transferable Finder’s Warrants for a period of three years at an exercise price of $0.34. All securities issued are subject to a 4-month plus one day hold period ending October 11, 2026. Insiders participated by subscribing for 5,524,640 Units for gross proceeds of $1,381,160, constituting a related party transaction. The net proceeds will be used to fund the ongoing development of the Company’s Cerro Caliche gold project in Sonora, Mexico and for general working capital purposes. The Company recently commenced a 50,000-meter drilling program at Cerro Caliche and expanded the project with the acquisition of 11 additional mineral concessions, and exploration will proceed alongside the proposed development of an open-pit, heap leach mining operation currently in the permitting phase for an initial 10-year production at a projected capacity of up to 16,000 tonnes per day.

Gold Strike Announces Fully Funded 2026 Drill and Exploration Program for Florin Gold Project, Yukon

(TSXV:GSR) Gold Strike Resources Corp. announced its 2026 exploration and drill program targeting the expansion of its inferred resource at the Florin Gold Project, with over 8,000 metres of diamond drilling planned. The Florin Project currently hosts a pit-constrained inferred mineral resource of 2.507 million ounces of gold (162.783 million tonnes at 0.48 g/t Au at a 0.30 g/t cut-off). The 2026 drill program will commence in early July and will focus on both enhancing the understanding of the Florin Gold Deposit and testing targets within 5 kilometres of the deposit. Northtech Drilling Ltd. of Yellowknife, Northwest Territories, has been engaged to supply two diamond drill rigs, with mobilization planned for early July 2026. The Class 3 Quartz Mining Approval (LQ00546a) for the Florin Project has been extended through December 31, 2028, providing regulatory authority for the exploration program. A concurrent helicopter-borne magnetotelluric (MT) geophysical survey will cover the Florin Project, FLR Project, and RJ Project, and field crews will conduct stream sediment, soil, and rock sampling programs. The company projects that drilling will generate metallurgical and structural data to support a future feasibility study and that surface exploration will produce additional drill targets for a 2027 drill program.

Scottie Resources | TSX.V: SCOT

• 50,000 metre drill program just launched at Scottie Gold Mine, BC Golden Triangle.

• Permitting path cleared.

• Direct-ship ore strategy advancing.

One to watch →

Hannan Secures Option Over Three High-Grade Gold Projects in Sweden; Drilling at Stavatrask to Commence This Month

(TSXV: HAN) Hannan Metals Limited has entered into an option agreement to acquire up to 100% of three high-grade gold projects in Sweden, comprising 8,405 hectares, through a low-cost, share-based structure. The Stavaträsk project is fully permitted and drill-ready, with a rig mobilising in mid-June 2026 for a staged program of up to 2,000 m. High grade outcrop grades at Stavaträsk reach up to 93 g/t Au and 24 g/t Ag, with a boulder field averaging 3.2 g/t Au, 67 g/t Ag, and 0.83% Cu. The Ådelfors project features historic grades up to 1,100 g/t Au over a 0.4 m vein width, with 131 historic workings across 7.5 km of strike, but has never been drill-tested. Skellefteå North has recent intercepts up to 1.8 m @ 28.4 g/t Au (including 0.4 m @ 132.2 g/t Au), with gold mineralization open in all directions and less than 5% of a 6.5 km trend drill-tested. The company projects that a follow-up electromagnetic (EM) survey is expected to be an effective tool to trace the system under cover along strike and down-dip, informing subsequent drilling.

Southern Cross Gold Drills 36.6 M @ 4.0 G/t Au and 1.0% Sb

(TSX:SXGC) Southern Cross Gold Consolidated Ltd announced results from seven drill holes at the 100%-owned Sunday Creek Gold-Antimony Project in Victoria, including a best intersection of 36.6 m @ 6.5 g/t AuEq (4.0 g/t Au, 1.0% Sb) from 700.0 m in drill hole SDDSC202. High grade assays reached up to 493 g/t Au and 29.1% Sb, with two previously unmodelled high-grade zones added to the Apollo East vein architecture. SDDSC214W1 expanded Apollo East a further 20 m east, intersecting 0.5 m @ 251.4 g/t AuEq (232.0 g/t Au, 8.1% Sb) from 605.2 m, and individual assays up to 362.0 g/t Au. The shallowest Apollo East results to date in SDDSC217 included 0.1 m @ 130.6 g/t AuEq (55.8 g/t Au, 31.3% Sb) from 324.9 m, confirming strong antimony tenor near surface. Seven assays exceeded 100 g/t Au and five exceeded 20% Sb across the holes reported, while eleven rigs and 67 pending holes continue the 200,000 m program to Q1 2027. The company projects ongoing step-out drilling to uncover the potential extent of the mineralized system and is accelerating efforts to define the full extent of the gold-antimony system.

Mithril Silver and Gold Extends High-Grade Mineralisation at Copalquin Project in Mexico

(ASX: MTH) Mithril Silver and Gold has intersected further high-grade gold and silver mineralisation during drilling at the Target 1 resource area within its Copalquin district project in Mexico. The strongest new result returned 7.25 metres at 4.01 grams per tonne gold and 225.1g/t silver, or 7.22g/t gold equivalent, from 375.70m. Mithril has now completed 204 holes for 60.6km at the Target 1 resource area, including 127 holes drilled after the 2021 maiden resource. The 2026 campaign has focused on de-risking the model by drilling inferred resource areas and testing gaps within the El Refugio vein system. Mithril has completed 11,238m of drilling from a planned program of up to 25,000m across Copalquin during the first six to eight months of 2026. The company has also secured an exclusive option to acquire the nearby 20-square-kilometre La Dura gold-silver property. An updated mineral resource estimate (MRE) is planned for late June.

Barton Gold Finalises $25.9m Placement to Fund Development of South Australian Projects

(ASX:BGD) Barton Gold has completed a $25.9 million share placement to global institutional investors to fund key value-add milestones across its South Australian portfolio. The raising was supported by existing investors Franklin Templeton, Aegis Financial, IXIOS and MERK, and closed significantly oversubscribed. Barton increased the placement amount from an initial $25.5m to accommodate additional demand from North American investors, resulting in a total of 30.47 million shares issued at $0.85 each. The issue price represents a 3.4% discount to Barton’s last traded price of $0.88 and a 7.5% discount to the 10-day volume weighted average price of $0.919. Barton confirmed it was now fully funded to complete a series of milestones at the Challenger gold project, including mineral resource updates, conversion to ore reserves, and a definitive feasibility study. Funds will also be used for a pre-feasibility study and mining lease application at the Tunkillia project, as well as drilling and metallurgical test work at the Tolmer prospect, discovered in 2025 with an intersection of 6 metres at 4,747 grams per tonne silver from 46m depth. Barton reports having more than $30m cash at hand and its own strategic diesel reserve.

Impact Minerals to Launch Phase 2 Drilling Campaign at Commonwealth-Silica Hill Gold-Silver Project

(ASX: IPT) Impact Minerals’ joint venture partner Kuniko (ASX: KNI) is preparing to start Phase 2 diamond drilling at the Commonwealth-Silica Hill gold-silver project in central New South Wales, with the first hole scheduled for next month. The campaign will initially focus on six holes for a total 1,340m with scope to materially scale. Under the terms of a binding earn-in and joint venture agreement, Kuniko can secure a 51% interest in Commonwealth-Silica Hill by spending $1.5 million within two years and increase its interest to 70% by spending the same amount again over the following two years. Impact will retain a 30% free-carried interest until a decision to mine, after which it may elect to contribute or dilute its interest to 10% and convert to a 2% net smelter royalty. Phase 1 delivered a best assay at Silica Hill of 84m at 2.6 grams per tonne gold equivalent (0.6g/t gold, 123g/t silver, 0.08% lead, and 0.16% zinc) from 226m including 3.4m at 50g/t AuEq and 0.5m at 347g/t AuEq (20,603g/t silver and 27g/t gold), with a best result at Commonwealth South of 7.1m at 9.7g/t AuEq (8.4g/t gold and 42g/t silver) including 3.1m at 21.6g/t AuEq (18.6g/t gold and 76g/t silver). The campaign had a 100% success rate, with all six holes intersecting mineralisation. The company projects that the next program will test the thesis that Commonwealth and Silica Hill sit atop a much larger system.

Sranan Gold Corp | CSE: SRAN | OTCQB: SRANF

• Active drilling in Suriname's Guiana Shield — same gold belt as Founders Metals' major discoveries.

• Latest result: 11m @ 7.33 g/t Au including 4m @ 14.59 g/t Au and 1m @ 44.60 g/t Au.

• 900m+ mineralized shear corridor defined.

• 12,500m drill program for 2026 fully funded.

• Oversubscribed $3.6M private placement closed May 27, 2026.

Find out more →

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