Gold price boosted by recovery in central bank buying

Gold prices climbed higher on Monday as it appears that central banks have regained their appetite for buying bullion after staying on the sidelines for the past year.

Spot gold advanced 0.3% to $1,790.52 per ounce by 11:45 a.m. ET, approaching the $1,800 level last seen in mid-June. US gold futures saw a gain of 0.5%, trading at $1,791.70 per ounce in New York.

Gold has come under pressure this year as higher bond yields made the non-interest bearing haven seem less attractive to investors. After recovering in April and May, the yellow metal fell by the most in more than four years last month as the US Federal Reserve turned more hawkish and the dollar strengthened.

However, gold has recaptured some of its shine lately as central banks from Serbia to Thailand have been adding to their holdings.