Gold Price Rally: Why Central Banks, China & Tether Are Driving Strong Bullish Momentum - Business Today

AI desk brief

Gold has rallied roughly 12–12.5% over the past six weeks, and the article argues the move still has room to run on a mix of central bank diversification, China demand and fresh investment flows. Kunal Shah of Nirmal Bang remains bullish, saying the bid is being supported by sovereign buying, corporate-style demand from entities such as Tether, and broader investor hedging against rising US debt and fiscal concerns.

Shah’s core point is that this is not just a rates-driven trade: even if interest rates move around, ongoing liquidity creation and new money entering the financial system should keep gold supported. The article frames central bank purchases and diversification away from traditional reserve assets as a structural tailwind, with China and other official buyers still playing a meaningful role.

For traders, the near-term implication is that dips may continue to find sponsorship as long as official-sector buying and macro hedging flows remain intact. The main risk to the rally would be a sharp tightening in financial conditions or a reversal in investor risk appetite, but the piece leans clearly toward persistent bullish momentum for bullion.