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Gold rebounds from July lows as investors weigh US fiscal worries
ING says gold-backed ETFs added $3.0B in July, lifting holdings by 23 tonnes, as a weaker dollar and central bank buying supported prices.
Gold prices have rebounded from their July lows near $4,000 per ounce to around $4,600 per ounce, with ING pointing to renewed investment demand, a weaker dollar, and growing concerns about the US fiscal outlook.
ING Commodity Strategist Ewa Manthey said gold’s resilience suggests the move is not only tied to lower yields, with attention turning to government borrowing and fiscal credibility, which in turn reinforces gold’s role as a store of value.
The note highlights improving ETF demand, citing World Gold Council data that global gold-backed ETFs attracted $3.0B in July and increased holdings by 23 tonnes. It also points to ongoing official-sector support, with reported net purchases of 51 tonnes in June and 102 tonnes in the first half, led by Poland and China.
Still, ING flagged headwinds for gold, including persistent US inflation and the risk of further Fed tightening, and said its $4,150 per ounce fourth-quarter average price forecast assumes restrictive monetary policy keeps yields from falling sustainably. The firm added that weaker dollar moves, renewed ETF buying, and mounting fiscal concerns are creating clearer upside risks to that outlook.
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