Gold: El-Erian Sees Central Bank Buying

Economist Mohamed El-Erian on Thursday said that the renewed buying by central banks could lift gold out of its recent slump after the precious metal briefly fell below $4,000 an ounce this week.

El-Erian Sees One Catalyst For Gold In a post on X, El-Erian said the biggest factor that could reverse gold’s recent weakness is “renewed, consistent central bank buying.” He added that lower oil prices could support that trend by easing pressure on many countries’ foreign exchange reserves, potentially allowing central banks to resume accumulating gold.

I get asked a lot what decisively gets gold out of its recent funk, which included its price dipping below $4,000 an ounce (CNBC chart below).

My simple answer is renewed, consistent central bank buying.

The recent fall in oil prices may help in this regard as, for many countries… pic.twitter.com/jreaehyQmw — Mohamed A.

El-Erian (@elerianm) June 25, 2026 Gold Pulls Back From Record Highs Gold briefly slipped below $4,000 an ounce this week after rallying to record highs earlier this year on geopolitical tensions, strong central bank demand and expectations for lower interest rates.

The metal then came under pressure as the Federal Reserve’s hawkish stance on interest rates outweighed support from easing tensions between the U.S. and Iran.

Last week, Goldman Sachs lowered its year-end 2026 gold price target to $4,900 an ounce from $5,400, citing a more hawkish Federal Reserve and weaker-than-expected demand for gold-backed exchange-traded funds.

UBS, however, continues to forecast gold at $6,200 by year-end, while JPMorgan remains even more bullish with a target of about $6,300.

The most popular ETF benchmark, SPDR Gold Shares (NYSE: GLD ), has fallen for four consecutive months since gold reached a record high of around $5,600 an ounce in January 2026.

GLD has fallen 7.24% so far this year.

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Official-sector purchases have been a key driver of gold’s rally, helping support prices even as investment demand fluctuated.

Gold was trading around $4,030 an ounce at publication time and was on track for a weekly loss of about 5%.

Price Action: The SPDR Gold Shares gained 0.97% on Thursday to $369.46 and added another 1.11% in extended trading. edge rankings indicate GLD has a Momentum score in the 29th percentile, and a negative price trend across short, medium and long term.

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