Gold ETF Rally Fueled by Fed Easing Expectations, Central Bank Buying

The SPDR Gold Trust GLD has experienced a significant surge in value, gaining 7.7% last week due to macroeconomic uncertainty and a weaker-than-expected July jobs report that reduced expectations for a Federal Reserve rate hike this year.

Chinese investors have been increasing their buying of gold, and continued inflows into gold ETFs are also supporting the rally.

UBS analysts are bullish on gold, arguing that it has fundamental support and should see prices rise toward $5,000 an ounce in the first half of 2027, according to Yahoo Finance.

The U.S.-Japan Yen Move Supports Gold: Recent efforts by the United States and Japan to stabilize the yen have eased concerns about a potential sell-off in U.S. Treasuries, which could push bond yields higher and create headwinds for non-yielding assets like gold.

Central Bank Buying Adds Support: Continued purchases by central banks are another key pillar of the bullish gold outlook. Strong official-sector demand could provide a floor for prices even if short-term market volatility persists.