Central Banks Buying Gold: The Floor Under the Market?

While retail investors panic, sovereign wealth funds and central banks are playing a different game. According to UBS analysts, “central banks’ diversification into gold remains strong.” This buying pressure is the only thing preventing a total collapse in gold prices.
This suggests a geopolitical shift. Countries are actively diversifying away from the US dollar (and by extension, US assets). They are buying gold to sanction-proof their reserves.
This trend is bullish for gold in the long run but bearish for the US tech bubble. If foreign capital stops recycling into US Treasuries and US stocks, the liquidity fueling the AI boom dries up.
The divergence between retail selling and sovereign buying is a key dynamic. The “smartest” money (nations) is buying real assets (gold), while the “fastest” money is fleeing paper assets (crypto/tech). Following the central banks might be the best strategy.