Gold rallies to May levels as Treasury buybacks and currency debasement fears boost demand amid softer US data.
Gold prices have recovered from July lows near $4,000 to around $4,600 per ounce, driven by renewed investment demand, a weaker dollar, and growing concerns over US fiscal policy. Treasury buybacks and worries about currency debasement have reinforced gold’s appeal as a store of value.
ETF demand surged in July, with global gold-backed funds attracting $3bn and adding 23 tonnes to holdings. Central bank purchases also remained strong, totaling 102 tonnes in the first half of the year, led by Poland and China. However, persistent US inflation and potential Fed tightening remain key risks.
Softer US economic data has revived expectations of Fed easing in 2027, further supporting gold’s rebound. Lower short-term yields and a weaker dollar have contributed to the metal’s resilience.