Price of gold rose by 7.7%, the strongest weekly performance in over six years

The price of gold rose by 7.7% in a single week?marking its strongest week-on-week performance since March 2020?to over $4,400 per troy ounce, following months of significant market pressure, according to a specialized analysis released on Thursday.This represents an increase of approximately 9.7% over the last month and nearly 32% compared to the same period last year, with technical analysis pointing to the $4,500 level as the next key threshold for the market.The recovery in the price of gold was driven, among other factors, by hopes for an agreement between the conflicting parties that would allow the resumption of maritime transport through the Strait of Hormuz, as well as by increased demand via exchange-traded funds (ETFs)?particularly in Asian markets?according to an analysis by Tavex Romania."A 7.7% rise in a single week is undoubtedly a significant move, yet the percentage itself is not the most important signal. What lies behind this rebound is more relevant. We are seeing a combination of investment demand via ETFs, intensified activity in Asian markets, and a shift in some of the factors that had exerted pressure on gold in recent months. This trend demonstrates how quickly market sentiment can change," commented Victor Dima, Treasury Manager at Tavex Romania, in a statement.The sharp price movement follows a difficult period for the precious metal. The conflict between the United States and Iran in the Persian Gulf region and the closure of the Strait of Hormuz generated significant tensions in financial markets. The shock to the oil market drove up inflation expectations, bond yields remained high, and the need for liquidity contributed to gold sales.Against this backdrop, the price of gold fell to around the $4,000-per-troy-ounce level, where a significant technical support level subsequently began to take shape. The picture is now starting to change.Gold has broken out of the downward trend seen in recent months, and the next key level watched by the market is the 200-day moving average, currently situated just below the $4,500-per-troy-ounce mark."The area around the $4,500 level is significant because the market will need to demonstrate there whether the recent movement is merely a short-term rebound or marks the beginning of a more lasting trend shift. A sustained break above this level would be a strong technical signal; however, investors should not view any single price level as a guarantee of the market's future direction," explained Victor Dima.The short-term rebound in the price of gold is also taking place against the backdrop of another significant development: the constant structural demand for physical gold from central banks.According to the analysis, the first quarter of 2026 was unusually weak. Initial estimates, which pointed to purchases of approximately 244 tonnes, were subsequently revised downwards to just 57 tonnes after significant gold sales and transactions by certain central banks were factored into the data. Just one quarter later, the situation had changed dramatically.In the second quarter of 2026, central bank net purchases reached 288.9 tonnes?approximately five times the revised level recorded in the first quarter and the highest level for a second quarter in the available data series."Central banks do not buy gold with a one-week or one-month horizon. For them, gold is part of reserve management, diversification, and strengthening long-term financial resilience. That is why the resumption of purchases in the second quarter is a more significant signal for the long-term outlook than the strongly positive or negative performance recorded in any given week," added Dima.Recent months have once again demonstrated that, even within a market characterized by a long-term upward trend, gold can undergo significant corrections. This is one of the reasons why physical investment gold is viewed differently from assets primarily used for short-term trading."This difference in investment horizons was particularly evident in 2026. Following the sharp decline at the beginning of the year, gold once again demonstrated its ability to recover a significant portion of its price losses within a relatively short period, while central bank demand and investment flows continue to play a key role in overall market performance," the analysis indicates.Tavex is an investment gold dealer and a member of the Tavid Group, established in 1991.