By Bas Kooijman, CEO and Asset Manager, DHF Capital S.A
21st July 2025
Gold prices climbed on Monday as the US dollar softened and geopolitical risks resurfaced. Both the dollar and US Treasury yields retreated, offering relief to non-yielding assets. While strong US data had recently tempered expectations for near-term Fed easing to a certain extent, dovish remarks from Fed Governor Christopher Waller weighed on the greenback. Markets are now focused on upcoming commentary from Fed Chair Jerome Powell and Governor Michelle Bowman for further policy signals.
Trade policy uncertainty also bolstered gold’s appeal. US Commerce Secretary Howard Lutnick confirmed that August 1 remains the deadline for the implementation of new reciprocal tariffs. Although negotiations continue, the threat of broad trade disruptions continues to support safe-haven demand.
Geopolitical tensions further underpinned the asset. Russia launched another wave of drone and missile strikes on Kyiv amid stalled ceasefire negotiations, while reaffirming its hardline conditions despite mounting international pressure. In the Middle East, tensions also remain elevated, supporting demand for safe-haven assets.