By Bas Kooijman, CEO and Asset Manager, DHF Capital S.A
Gold prices hovered near their lowest level in nearly three weeks on Tuesday, as a firmer dollar and improving global trade sentiment continued to suppress safe-haven demand.
Recent agreements between the US and the EU, as well as signs of progress with China, have eased fears of a full-blown tariff confrontation, encouraging a rotation away from defensive assets.
Investors are now turning their attention to a pivotal stretch of US macro data and this week’s Federal Reserve meeting, where interest rates are widely expected to be held steady. Any unexpected softness in data or a dovish shift in Fed rhetoric could support the metal.
Despite current weakness, gold remains underpinned by long-term demand drivers. Exchange-traded funds registered a net inflow of 13.4 tonnes in the week ending July 25, the strongest weekly addition in a month, suggesting ongoing investor interest.
Geopolitical risks also persist. Russian airstrikes in Ukraine continued, even as diplomatic pressure mounts. US President Donald Trump shortened his ceasefire deadline to just “ten or twelve days,” warning of severe sanctions on Moscow.