Gold Sentiment Shifts Positively as Rate-Hike Fears Eased

Sentiment towards gold has shifted more positively over the past month, as fears of interest rate increases in the U.S. have eased following a weaker-than-expected payrolls report for July and downward revisions to previous months' data.

The U.S. Federal Open Market Committee left interest rates unchanged at its July meeting, although three members dissented in favor of a hike. With recent data weakening the case for an immediate rate increase, markets have sharply pared expectations for near-term tightening.

This moderation in rate-hike fears has been supportive for gold, as global gold exchange-traded product (ETP) purchases have resumed following months of outflows. Between 20 July and 13 August, there were 1.3 million ounces of inflows into gold ETPs, reversing most of the outflows from the prior month.

Central bank demand for gold has also rebounded in Q2 2026, with a sharp increase to 289 tonnes, representing the strongest Q2 demand on record since 2010 and the strongest quarter since Q4 2024. However, aggregate H1 2026 central-bank purchases were the lowest since 2022.