Gold Price News: Gold Nudges Higher, ETF Flows Add $3.7 Billion In July

Gold prices put in a more positive performance on Thursday, reclaiming the $2,400 an ounce level after a degree of weakness seen earlier in the week.

Prices moved higher to $2,425 an ounce on Thursday, compared with around $2,384 an ounce in late trades on Wednesday.

Prices fell below the 20-day moving average on Monday this week, and this may have given short-term traders a reason to step in on the buy side, supporting gold and lifting prices back above $2,400 an ounce on Thursday.

The last few days have been bearish overall for gold, although this comes in the context of all-time highs of over $2,470 an ounce seen on July 17 and August 2.

Global gold ETFs saw their strongest month in July since April 2022, the World Gold Council said in a report on Thursday: Western activity picked up in July | World Gold Council. ETFs attracted $3.7 billion in July, with all regions seeing inflows, led by Western funds, the industry group said.

Moreover, July saw a large increase in open interest in gold futures on exchanges, although this has moderated somewhat in late July and early August, according to World Gold Council data: Gold Open Interest Chart 2021 | World Gold Council

Gold prices continue to take support from expectations that the US Fed will begin an interest rate cutting cycle in September. The markets are weighing the prospects of total cuts of up to 1% by the end of the year, from the current 5.25%, as the recent period of higher interest rates has finally begun to bring inflation down closer towards the Fed’s 2% target. US inflation came in at 3% in June, compared with 3.3% in May and 3.5% in March.