Invesco Sees Gold Rebounding Through 2026 on Central Bank Demand After Tough Q2

Gold suffered its worst quarter in 12 years in Q2, falling 14.1% to close at $4,008 an ounce amid rising inflation expectations and a firmer dollar. Invesco analysts noted this marked the steepest drop since 2013, though the metal remains up 21.3% over the past year, and highlighted risks from potential Fed rate hikes under Chair Kevin Warsh, with markets now pricing in a 67% chance by September. Despite these headwinds, Invesco stays constructive for the second half of 2026 due to intact structural support from central banks, where 45% of respondents plan to increase reserves and 89% expect global holdings to rise. This buying is forecast to drive prices higher through 2026.