Gold Miners Rally as Central Bank Buying Surges 500% Since 2022

Gold miners rallied after a brutal selloff that knocked bullion down $165 in a single session. The rebound has analysts calling a bottom.

Otavio Costa said the move signals a shift from weak hands to strong ones. "Game on for gold miners," Costa said in comments published by King World News. The sector had fallen as much as 9% during the takedown before staging a recovery.

Nomi Prins said she expects gold and silver prices to bottom in this zone, with mining stocks following. She also gave predictions for oil and uranium markets in a separate interview with the same outlet.

Central banks are a key driver. Gold purchases by central banks have increased 500% since 2022, according to a report cited by King World News. That buying spree has absorbed supply and supported prices even during sharp corrections.

Open interest in gold futures collapsed to its lowest level in decades, a sign that speculative froth has left the market. That kind of structure often sets up a short squeeze, analysts on the site noted. Alasdair Macleod said the takedown was orchestrated and that the subsequent rally confirms the bull case.

Goldman Sachs, referenced in a separate King World News item, confirmed "the next layer of damage" in global markets, though no details were provided. The gold profile shows a market that remains deeply correlated to dollar moves and real yields.

The rally leaves gold near levels that some see as a launchpad. One analyst cited by the site holds an $8,900 price target. For now, the move higher has to hold through the week to confirm the bottom is real.