Factors Influencing the Gold Price
The gold price has decreased recently, which can be attributed to several factors, including the extension of tariffs and the associated risk sentiment in the markets. Here are some key factors influencing the gold price:
Extension of Tariffs and Trade Agreements
The announcement of tariff extensions, as made by former U.S. President Donald Trump, can affect the risk sentiment in the markets. Such measures can lead to uncertainties that would typically drive the gold price up, as investors flee to safe assets. However, the recent market reaction has shown that the extension of tariffs does not necessarily lead to an increase in the gold price, but rather a possible decrease as the markets respond to positive economic signals.
Fed’s Interest Rate Expectations
The Federal Reserve’s (Fed) interest rate expectations play a crucial role in determining the gold price. Higher interest rates can lower the gold price as they increase the attractiveness of other investments such as government bonds. If the Fed plans or implements interest rate hikes, it can lead to a decrease in the gold price.
Gold Market Developments
Recent developments in the gold market, such as new gold discoveries or technological advances in gold extraction, can also influence the gold price. For example, Osisko Development Corp. recently announced positive results from ore sorting for the Cariboo Gold Project, which could improve the efficiency of gold extraction.
Forecasts for the Gold Price
Experts predict a moderate but steady increase in the gold price by 2025. A solid growth was recorded in July 2025, indicating stable demand for gold.
Impact on Investors
For investors, these developments are relevant as they influence risk sentiment and investment strategies. If the gold price falls, it could be an opportunity to buy gold to benefit from future price increases. Conversely, rising interest rates and positive economic news may lead investors to consider investing in other assets.
Summary
The gold price is influenced by a variety of factors, including tariff policy, interest rate expectations, and developments in the gold market. While markets respond to positive economic signals, the gold price may decline in the short term. However, in the long term, gold remains an attractive investment option for many investors, particularly in times of economic uncertainty.