The Bulgarian National Bank (BNB) has purchased 66,000 troy ounces of gold, equivalent to 2,053.2 kilograms, in a move linked to Bulgaria's upcoming adoption of the euro. According to the BNB's official statement, the transaction took place on international markets at prevailing prices and accounts for less than 1% of the central bank's international currency reserves. Following the European Council's decision on July 8 to introduce the euro in Bulgaria from January 1, 2026, the BNB is required under European Central Bank (ECB) rules to transfer foreign reserve assets to the ECB. The recent gold acquisition ensures sufficient reserves without reducing the BNB's existing stock, while simultaneously granting access to Eurosystem revenue streams.

The World Gold Council highlighted that this is the largest such operation by the BNB since 1997, when Bulgaria first introduced the currency board.

Meanwhile, gold prices continue to surge globally. Spot gold hit USD 4,049.56 per ounce on Wednesday, marking the 40th record high of the year, before trading slightly lower at USD 4,044.78 by mid-morning ET. US December futures also climbed 1.5% to USD 4,072 per ounce. This rally has pushed gold prices to double the levels seen two years ago, and since 2000, the metal has outperformed global equities with a total return exceeding 1,200%. Historically, gold's price has tracked periods of economic and political stress, surpassing USD 1,000 an ounce after the global financial crisis, USD 2,000 during the COVID-19 pandemic, and USD 3,000 in 2022 amid US tariff plans. The latest milestone comes amid global political turbulence and uncertainty over US fiscal stability.

Gold's strong performance this year is also driven by increased central bank demand. Analysts see this as a structural shift in reserve management behavior unlikely to reverse in the near term. Goldman Sachs recently raised its December 2026 gold forecast from USD 4,300 to USD 4,900 per ounce, citing continued accumulation by central banks despite elevated prices. Investor demand for safe-haven assets has surged, with gold-backed exchange-traded funds recording their largest monthly inflow in over three years in September. Analysts point out that with economic growth slowing, potential rate cuts, and stretched AI-focused equities, retail and ETF buying are accelerating the rally.

The US Federal Reserve's uncertain path is another factor fueling gold prices. Analysts argue that a Fed leaning toward lower rates could boost inflation and further strengthen gold, which is considered an inflation hedge. Macquarie Bank noted that gold might reach its cyclical peak amid concerns about the Fed's independence, and a compromised Fed could push prices even higher. Billionaire investor Ray Dalio also emphasized gold's role as a strategic portfolio diversifier, likening its current rally to the 1970s, and suggested that an optimal allocation might include around 15% in gold.