Trade tensions also boosted gold’s recovery. Investors grew cautious ahead of the August 1 tariff deadline. President Trump is set to impose aggressive tariffs on countries without finalised deals. These actions revived demand for gold as a hedge against geopolitical and economic uncertainty. Moreover, the Fed’s pause in rate hikes kept real yields under pressure.
On the other hand, the institutional demand continues to grow. The World Gold Council reported strong inflows into gold ETFs in the first half of 2025. Central banks also added gold to reserves, reaffirming their role as a strategic asset. With inflation risks persisting and global trade friction rising, gold remains well-supported in the medium term.
Gold Technical Analysis
XAUUSD Daily Chart – Breakout from Ascending Triangle
The daily chart for spot gold shows that the price has broken below the ascending triangle and is now moving toward the 100-day SMA. The price appears weak following the breakout, suggesting that the 100-day SMA may also be broken to the downside.
Gold may continue to decline further in search of support. However, the broader-term outlook remains strongly bullish, and the price is likely to find a bottom near the key support level, potentially setting the stage for the next upward move by the end of 2025. The levels of $3,150 and $3,000 remain the key support areas.