Gold Prices Hold Steady—But For How Long?

Weekly Gold Price Movement

As of July 21, 2025, physical gold is holding fairly steady, with a slight increase over recent weeks as the spot price currently hovers around $3,400 per ounce. Over the past two weeks, gold prices have remained within a narrow range, briefly dipping to around $3,339 before recovering, reflecting a delicate balance between macroeconomic optimism and geopolitical caution.

Headlines Shaping Gold's Momentum

Reuters reports that recent gains are attributed to a softer U.S. dollar and speculation surrounding upcoming central bank actions. Gold traditionally benefits when the dollar weakens, as it becomes cheaper for international buyers. However, mid-month pressure from strong U.S. economic data—including solid June retail sales and robust employment figures—temporarily pulled prices lower.

One of the key factors currently influencing gold prices is the evolving global trade landscape. On July 8, President Donald Trump sent letters to 14 countries warning of impending tariff hikes that will take effect on August 1 unless agreements are reached. These developments have introduced new uncertainty into international markets, especially given rising tensions with both the European Union and China. As global trade conditions remain fragile, investors are turning to gold as a hedge against potential disruptions in the global economy's flow of goods.

Additionally, political uncertainty within the U.S. is influencing investor sentiment. On July 16, markets were briefly rattled by reports that President Trump was considering firing Federal Reserve Chair Jerome Powell. The Wall Street Journal notes that the resulting market uncertainty sparked a rally in gold, as investors moved into safer assets. Though the White House quickly denied the claim, the market's reaction highlighted how sensitive investors are to potential disruptions in the central bank's independence. 

Geopolitical Factors

Looking ahead, several key events could potentially lead to significant increases in gold prices. Foremost is the upcoming Federal Reserve policy meeting, where investors will be looking for any indications of a rate cut or dovish shift in tone. With inflation moderating and signs of softening in certain economic indicators, the Fed could choose to ease its policy stance. A dovish Fed typically weakens the dollar and pushes gold higher. Another major event to watch is the enforcement of new tariffs on August 1, which could cause significant volatility in equities and currencies if international negotiations falter. Lastly, global geopolitical developments—particularly U.S.–China relations and U.S. involvement in ongoing tensions in Eastern Europe—will continue to shape demand for safe-haven assets. 

For investors, these converging factors make physical gold an increasingly attractive asset. Gold has long been prized for its role in hedging against inflation, preserving wealth, and protecting portfolios during periods of uncertainty. With the U.S. dollar facing near-term headwinds, geopolitical risks escalating, and market volatility expected to rise, now may be a strategically sound moment to begin or expand gold holdings. 

Why Investors Should Be Buying Gold

Despite short-term fluctuations, many analysts argue that this remains a compelling time to invest in physical gold. As MoneyWeek explains, gold's enduring value as a hedge against inflation, currency depreciation, and systemic risk makes it a secure investment choice.

With central banks continuing to accumulate gold reserves and physical gold demand growing in regions such as India and China, the long-term fundamentals appear strong. Periods of market uncertainty—such as the current landscape—typically provide a buying opportunity before potential price breakouts.

For investors seeking safety, diversification, or a counterbalance to fiat-based assets, physical gold continues to demonstrate resilience and strategic value in today's uncertain economic environment.