Gold analysis from Invesco: Pay attention to bond yields and risks
In the third quarter of 2026, Invesco evaluated the effects of bond yields and Fed policies on the gold market.
US-based investment firm Invesco announced in its gold analysis for the third quarter of 2026 that prices rose by 3.7 percent despite the Fed's interest rate hike and the sharp increase in bond yields.
Rise in Bond Yields
According to Invesco, the most significant factor affecting gold prices in the third quarter was bond yields.
The global wave of selling in fixed-income assets sharply drove up yields on US Treasury bonds across all maturities, with long-term yields reaching multi-decade highs.
Renewed Shift Toward Gold ETPs
Global investors turned back to gold exchange-traded products in the third quarter of 2026.
While holdings in physically backed gold ETFs declined for most of the year, this trend reversed at the end of the quarter, and the amount of gold in global ETPs reached a 12-month high.
Central Bank Purchases
Invesco stated that it expects central banks to continue purchasing gold in order to diversify their reserves.
According to World Gold Council data, central banks purchased more gold in the second quarter of 2026 than in any other recorded second-quarter period.
Potential Risks for the Market
Invesco stated that the outlook could deteriorate if the US Dollar strengthens further or if central banks slow down their gold purchases.
Conversely, growth concerns, the fiscal outlook, and geopolitical shocks were listed among the developments that could drive gold prices higher.