bullion

The World Gold Council’s quarterly report, published on Thursday, showed that demand for bullion hit a record high over the third quarter thanks to a continued buying spree from investors and central banks.

The move means bullion is now trading about 9% short of the record high it hit earlier this month.

BlackRock’s Investment Institute, headed by Jean Boivin, thinks central bank buying will remain a “persistent factor” in boosting gold prices, and sees that bullion as a “tactical exposure in portfolios.”

While there’s an argument that bullion looks overbought, the same factors that have driven its surge this year—a central-bank buying spree and the prospect of lower interest rates—could provide some support.

Gold mining stocks are now reacting to the price of bullion the way crypto companies react to the price of Bitcoin.