Gold prices eased to around $3,307 per ounce on Tuesday, reflecting cautious optimism as tentative U.S. trade deals reduced safe-haven demand. Meanwhile, a firmer dollar and rising Treasury yields added mild pressure on bullion, keeping it within a tight range.
Trade optimism trims geopolitical bid
Spot gold edged lower after signals of progress in U.S. tariff negotiations with major partners helped calm global markets. That optimism slightly diminished the need for hedges like gold, even as geopolitical undercurrents continue to simmer.
“Gold is edging lower on optimism over trade, but we’re still tracking a solid range between $3,300–$3,350,” noted Tai Wong, an independent metals trader, in comments picked up by Reuters.
ETF demand remains historically strong
Despite near-term softness, investor appetite for gold-backed ETFs remains robust. According to the World Gold Council, physically-backed gold funds attracted $38 billion in the first half of 2025, the highest six-month haul since early 2020. Global holdings rose by 397 tons, with North America and Asia leading the inflows.
This persistent ETF interest highlights how investors continue to seek insurance against macro uncertainty, even as risk assets like equities keep setting fresh highs.
Watching yields and the next inflation print
With U.S. 10-year Treasury yields hovering near 3.85%, gold’s opportunity cost stays contained, but any sharp bond sell-off could weigh on the metal. Traders now look to upcoming CPI data for clues on whether inflation surprises might renew safe-haven demand.
Gold remains comfortably supported by ETF flows and lingering global jitters. But breaking out decisively above $3,400 will likely require either a policy shock or new geopolitical stress that sends investors back to classic hedges.
