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Experts say gold remains a good hedge against uncertainty. If the dollar stays weak and the Fed signals rate cuts, gold could test fresh highs.
By Anshul July 23, 2025, 10:41:26 AM IST (Published)
Gold prices edged lower on Wednesday, July 23, as risk appetite improved after US President Donald Trump announced a trade deal with Japan. Spot gold slipped 0.2% to $3,423.44 per ounce, while US gold futures dropped to $3,437.70 an ounce.
The surprise deal eased fears of new tariffs ahead of an August 1 deadline, lifting Asian shares and trimming safe-haven demand. Yet, a soft dollar and weak US Treasury yields capped gold’s downside.
“Further trade deals could boost risk appetite and curb gold’s gains, but a weak dollar keeps a return to $3,500 an ounce in play,” said Tim Waterer, Chief Market Analyst at CM Trade.
The dollar index hovered near a two-week low, making gold cheaper for holders of other currencies. US 10-year Treasury yields fell to their lowest since July 9, supporting non-yielding bullion.
Tensions at the US Federal Reserve added to gold’s mixed signals. Trump’s renewed attack on Fed Chair Jerome Powell sparked speculation about policy changes.
“Low liquidity and political noise could keep gold volatile,” said Matt Simpson, Senior Analyst at City Index.
On the domestic front, rupee weakness pushed local gold prices higher.
As per Goodreturns, gold in India today is priced at ₹10,233 per gram for 24 karat gold, ₹9,380 per gram for 22 karat gold, and ₹7,675 per gram for 18 karat gold.
Rahul Kalantri, VP Commodities at Mehta Equities, said, “Gold rallied as trade uncertainty spurred safe-haven buying. Weakness in the dollar index and yields supported the rally. The rupee’s fall added to gains.”
Kalantri sees gold’s support at $3,395–$3,378 and resistance at $3,445–$3,462 an ounce. In rupee terms, gold has support at ₹99,780–₹99,450 per 10 grams.
“Expectations of Fed rate cuts, geopolitical tensions, and steady central bank buying keep gold’s safe-haven appeal intact. ETF inflows and speculative interest still have room to grow,” said Riya Singh, Research Analyst at Emkay Global.
Ross Maxwell of VT Markets added, “Gold’s safe-haven appeal remains strong. A weak dollar, global tensions, and a dovish Fed outlook could push prices higher in the near term.”
Should you buy gold now?
Experts say gold remains a good hedge against uncertainty. If the dollar stays weak and the Fed signals rate cuts, gold could test fresh highs. Investors may consider staggered buying on dips towards $3,400 an ounce or ₹99,500 per 10 grams, with an eye on global headlines and central bank cues.
-With Reuters inputs
