World gold prices are under adjustment pressure after a sharp increase in the past time. However, experts at Heraeus Precious Metals - a German precious metals group - believe that precious metals still have prospects for long-term increase as investment capital may return to the market.
According to Heraeus, gold prices have increased by about 15% from nearly 4,010 USD/ounce in mid-July to about 4,600 USD/ounce on August 27. During this process, gold holdings at ETF funds also recovered from the lowest level in July.
Experts believe that recent price movements are raising the question of whether the previous prolonged adjustment has ended or not. After a period of strong increase, the entry of gold prices into a period of accumulation is not too unusual.
Notably, gold prices have surpassed the 200-day moving average and this average is still trending upwards. According to Heraeus, this is a signal that the long-term upward trend of gold is still maintained.
However, investor sentiment has cooled down significantly compared to the beginning of the year. Gold bar and gold coin sales in Q2/2026 decreased by 36% compared to Q1, to 307 tons, according to World Gold Council (WGC) data. Gold holdings in ETF funds also decreased by 45 tons.
Heraeus believes that the decline in investor interest may become the premise for a new rally. Market history shows that gold prices tend to recover as investment sentiment becomes cautious or even turns pessimistic.
While private investors' cash flow shows signs of slowing down, central banks continue to buy gold. According to a WGC survey, central banks bought 345 tons of gold in the first half of 2026. Although the buying rate slowed down, this figure is still likely higher than the average of the past 15 years.
Heraeus believes this is one of the important factors to strengthen the long-term outlook for gold. Central banks hold gold to diversify their portfolios and increase their ability to defend against market fluctuations.
In addition, gold holdings in ETFs have recovered significantly. Gold registered in ETFs fell to 96.2 million ounces on July 20, before increasing to 98.9 million ounces, equivalent to an increase of 2.8%.
However, this level is still about 2% lower than the peak of the year set at the end of February.
Heraeus believes that the rebound in ETF gold volume along with the price increase shows that investors are gradually increasing their exposure to precious metals.
With the current developments, spot gold prices are around 4,425 USD/ounce, down about 0.68% in the session updated by Heraeus.
For silver, the amount of silver held in ETF funds also recovered from a low in July. The amount of silver registered increased from 780.8 million ounces to 801.2 million ounces, equivalent to an increase of 2.6%.
In the same period, silver prices increased by about 16%, from 58.75 USD to over 68 USD/ounce. However, the amount of silver in ETF funds is still 62.4 million ounces lower than at the beginning of the year.
According to Heraeus, the long-term outlook for gold remains positive, although prices may continue to fluctuate in the short term. The recovery of ETF cash flow, the central bank maintaining gold buying, and the upward trend of the 200-day moving average are creating a basis for the precious metal to continue to rise after a period of adjustment.
