Gold Prices Rebound from 3-Week Lows — Experts Predict Stronger Demand in Q4 2025 and Beyond
Gold prices rebound after hitting a 3-week low, with analysts projecting stronger long-term demand through Q4 2025 amid global economic uncertainty
Investing.com– Gold prices edged higher Tuesday, bouncing from near three-week lows as easing global trade tensions limited demand for the safe-haven metal ahead of a key U.S. Federal Reserve policy decision.
At 04:50 ET (08:50 GMT), spot gold edged up 0.4% to $3,327.10 an ounce, while gold futures also gained 0.4% to $3,381.00/oz.
Bullion has fallen for the past four consecutive sessions as recent U.S. trade progress eroded demand for haven assets.
The United States and the European Union reached a framework trade agreement over the weekend, with the easing trade tensions between the two major economies diminished near-term appetite for safe-haven assets like gold.
The US Dollar Index jumped more than 1% on Monday, and remains in positive territory this session, making commodities like gold, which is denominated in the U.S. currency, more expensive for overseas buyers.
However, despite the recent weakness, the gold price is likely to stay above $3,000/oz as the flight to safety endures, according to a Reuters poll of analysts.
The poll of 40 analysts and traders returned a median forecast of $3,220 per troy ounce of gold for this year, up from $3,065 predicted in a poll three months ago. The 2026 estimate rose to $3,400 from $3,000.
While uncertainty over looming trade deadlines and fiscal concerns have bolstered safe-haven gold’s appeal, most analysts believe that central banks remain the bedrock of gold’s rally, driven by the long-term diversification of reserves away from dollar dominance.
Investors are now looking ahead to the U.S. Federal Reserve’s two-day policy meeting, with a decision due on Wednesday. The central bank is widely expected to keep interest rates unchanged, although any signals on future monetary policy will be closely watched.
Caution ahead of the meeting kept bullion range-bound, with traders unwilling to take large positions.
Market participants also await a flurry of U.S. economic data due later this week, including second-quarter GDP, PCE inflation figures and the monthly jobs report.
Elsewhere, platinum futures fell 0.1% to $1,418.15/oz, while silver futures edged up 0.4% to $38.378 per ounce.
Benchmark copper futures on the London Metal Exchange fell 0.1% to $9,782.45 a ton, while U.S. copper futures were down 0.2% at $5.6048 a pound.
U.S. copper prices dropped nearly 3% on Monday after Chile’s finance minister said the country will push for an exemption for a planned U.S. tariff on the metal.
“The copper market is awaiting more details on planned copper tariffs, which are set to begin on 1 August,” ING analysts said.
“Traders have been shipping record volumes of copper to the U.S. to front-run the tariffs. This has caused a record price gap between U.S. copper prices and the benchmark LME prices,” they added.
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After sliding to their lowest point in over three weeks, gold prices rebounded sharply on Tuesday as investors responded to renewed safe-haven demand, a weaker U.S. dollar, and expectations of sustained long-term demand in the second half of 2025.
Spot gold prices rose by $25, or nearly 1.1%, to trade around $1,965 per ounce, bouncing back from the 3-week low of $1,940 recorded earlier this week. Gold futures on the COMEX also mirrored the recovery, gaining 0.9% to settle near $1,970 per ounce in intraday trade.
One of the primary catalysts behind gold’s rebound was the softening of the U.S. dollar index, which slipped by 0.3% on Tuesday to 101.4. A weaker dollar makes gold more attractive to buyers holding other currencies. Simultaneously, U.S. Treasury yields dipped, easing investor concerns about holding non-yielding assets like gold.
“Lower yields and a softer dollar always create the right environment for a gold bounce,” said Jeffrey Halley, senior market analyst at OANDA. “What we’re seeing now is technical support kicking in after a three-week slide.”
Ongoing tensions in global hotspots—including the South China Sea, Ukraine, and the Middle East—continue to stoke uncertainty in financial markets. These developments are driving renewed interest in gold as a safe-haven asset.
“With instability rising across multiple regions, gold is starting to look like a smart hedge again,” said Ritika Sharma, commodities strategist at ICICI Securities. “Even institutional buyers are beginning to re-enter the market.”
Despite recent price weakness, physical demand from countries like India and China remains solid. In India, gold jewelry purchases are expected to pick up in the coming months as the festive and wedding season begins. In China, gold remains a preferred asset among households amid concerns about property markets and stock volatility.
“The retail segment hasn’t slowed down,” noted Sharma. “In fact, bargain buying has picked up after the recent dip.”
Analysts across global banks and investment houses are projecting a steady rise in gold prices over the next two quarters, citing a combination of global inflationary pressures, geopolitical instability, and potential interest rate cuts by major central banks as key catalysts.
Goldman Sachs, in its latest commodity outlook, forecast gold to touch $2,050 per ounce by the end of 2025, supported by renewed ETF inflows and central bank purchases.
“Central banks continue to diversify away from dollar assets. Gold is the natural destination for this reallocation,” the Goldman report noted.
Meanwhile, the World Gold Council (WGC) has also indicated that central bank buying remains elevated, with over 400 tonnes of gold purchased in the first half of 2025—up nearly 15% from the same period last year.
