Gold Pushes Above $4,600 on Renewed Central Bank Demand
Gold ended a three-week consolidation phase, breaking above $4,600 on Friday for the first time since early April. The metal closed the week up 2.1% at $4,612, supported by fresh evidence of sustained central bank buying and a softer-than-expected April nonfarm payrolls print1.
Jobs data shifts the narrative
April nonfarm payrolls came in at 142,000, well below the 195,000 consensus, and the unemployment rate ticked up to 4.3%2. Wage growth held at 3.8% year over year. The miss prompted traders to add to bets on a September Fed cut, with the implied probability climbing to 58% from 41% before the release3.
Central banks step in
The People's Bank of China reported a 5-tonne increase in gold reserves for April, marking its 30th consecutive month of additions4. The Reserve Bank of India also disclosed a 4.7-tonne purchase over the same period5. Sustained buy-side demand from sovereign reserve managers has helped absorb the supply that emerging-market dollar holdings are quietly diversifying away from.
Treasury moves
The 10-year yield fell to 4.21% from 4.32% over the course of the week, the largest weekly drop since February6. Lower yields directly support gold by reducing the opportunity cost of holding the non-yielding metal. The dollar index slipped 0.7% on the week to 105.17.
Looking ahead
The next catalyst is the May 13 CPI report. A cooler print would extend the rally toward $4,700 resistance, while a hot reading risks a fast retest of the $4,500 support level that defined the April range.
Sources
- Yahoo Finance, COMEX gold futures (GC=F) weekly settlement
- Bureau of Labor Statistics, Employment Situation Summary, April 2026
- CME FedWatch Tool, implied Fed funds rate probabilities
- People's Bank of China, official foreign exchange reserve data release, April 2026
- Reserve Bank of India, weekly statistical supplement
- U.S. Department of the Treasury, daily Treasury par yield curve
- Intercontinental Exchange, U.S. Dollar Index (DXY) historical data