Gold rebounds from lows as weaker dollar and tariff risks

31 July 2025

Today’s markets analysis on behalf of Frank Walbaum Market Analyst at Naga

Gold rebounds from lows as weaker dollar and tariff risks reignite investor interest

Gold prices rebounded on Thursday after hitting a four-week low in the prior session. The metal benefited from a softer dollar and renewed trade uncertainty, as a fresh wave of tariff announcements by President Trump fueled safe-haven demand.

Investment flows continue to underpin gold’s resilience. Global ETF holdings rose by 170 tonnes in Q2. Although inflows slowed from Q1’s exceptionally strong levels, the overall trend remains constructive amid trade and geopolitical uncertainty.

However, gold could remain under pressure as markets have now dialled back expectations for a September cut after the Federal Reserve’s meeting. Stronger-than-expected economic data could also weigh on safe-haven assets.

Physical demand remains mixed. Indian jewellery demand dropped 17% in Q2 as local prices surged to record highs. However, ETF inflows in India reached a five-month peak in June, suggesting investors are increasingly shifting to financial gold exposure.

 

Zaid Barem / ymm