On July 29, 2025, the price of gold experienced a slight dip in the international market. At 8 AM, spot gold fell by 0.1 percent to $3312.07 per ounce. Meanwhile, the Bloomberg Dollar Spot Index saw a gain of 0.8 percent in the previous session and is now in a stable position. This indicates that the strength of the dollar has put pressure on the demand for gold.
Dollar Strengthens, Euro Weakens
The US dollar has strengthened following a new tariff agreement between the United States and the European Union. This is the first time this year that the dollar has seen such a surge, marking a significant turning point for it. On the other hand, the Euro is under pressure due to fears of a global economic slowdown triggered by news of a 15 percent tax on European exports. This has weakened the Euro, which has also impacted gold.
US-China Meeting in Focus
Investors are currently focused on the meeting between the United States and China in Stockholm. Commerce Secretary Howard Luttick has hinted that the previous trade ceasefire could be extended for another 90 days. However, the August 1st tariff deadline from US President Donald Trump is also rapidly approaching, creating an environment of uncertainty in the market.
Gold's Shine Under Pressure
Notably, gold prices have risen by more than a quarter since the beginning of this year. In April, it even crossed $3500 per ounce, which is a record level. Since then, gold has been trading within a limited range. According to analysts, investors are once again seeing gold as a safe haven due to global politics, tariff agreements, and fears of inflation. However, the strength of the dollar currently appears to be an obstacle to this.
Ukraine and Middle East Crises Also Increased Demand
This year, several geopolitical crises have emerged globally. The situation on the ground in Ukraine and the ongoing instability in the Middle East have also increased the demand for gold. These reasons have shifted investors' focus from the equity market to safe haven assets, with gold being the most prominent. But for now, the surge in the dollar and the potential US-China agreement have affected the movement of gold.
Status of Silver, Platinum, and Palladium
While gold has declined, silver prices have remained stable. No major changes were seen in silver prices in morning trading. Meanwhile, platinum and palladium prices have seen a slight increase. The main reason for this is the increase in demand for these metals from the automobile industry.
Environment of Caution in Markets Worldwide
There is an atmosphere of caution in global markets these days. The US tariff policy, European export duties, potential agreement with China, and geopolitical tensions – all these factors are making the market extremely sensitive. In this environment, gold also seems to be stuck in a kind of fluctuation.
Market Experts Watching the Next Step
Market experts are currently closely monitoring the US-China meeting, Trump's upcoming announcement, and the movement of the dollar. If the dollar's strength continues, further declines in gold could be seen. However, any kind of geopolitical tension or economic uncertainty could suddenly increase the demand for gold again.
Biggest Dollar Jump Since May
According to Bloomberg data, this is the biggest surge in the US dollar since May. This indicates that the US economy is currently succeeding in maintaining stability amidst global crises. But this has had a direct impact on the gold trading circle. The ber the dollar, the more expensive gold becomes in dollars, which reduces its demand.
Eyes on the Coming Days
Now the market's eyes are on the August 1st tariff deadline. If the US imposes a new tariff or the agreement with China is delayed, its impact may be seen again on gold prices. On the other hand, if global stability remains, gold is likely to continue trading within a limited range.
