Why Gold Is Falling While Central Banks Keep Buying | World Gold Council’s Joe Cavatoni
Kitco News: 11-13-2026
Gold fell as much as $135 an ounce on Nov. 12 to a new low for the year, even as central banks keep buying.
The World Gold Council estimates central banks bought 321 tons last quarter, but only 120 tons was reported, leaving 63% undisclosed.
Joe Cavatoni, the council's senior market strategist for the Americas, said the most active buyers "are either not reporting or reporting late," and that central banks tend to step in when prices dip. He said gold "overshot" in January and that the pullback is closer to what the council expected.
Cavatoni also explains why gold gets sold when investors need cash, why American investors stepped back this year while Europe and Asia stepped in, and how central banks earn a return by lending gold.
Looking to 2027, he said he expects gold to be "closer to 5,000 than 3,000," with some of the roughly $7 trillion in money market funds finding its way back to the metal.
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