# Why gold prices are showing signs of recovery Geopolitical tensions and central bank demand support gold. - **Source:** [Economic Times](https://brifing.si/source/37791137-c35a-4ffe-b6a9-fe103afc9e48) - **Published:** 2026-07-25 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/7c63545d-5eae-4c58-9bba-baf3a80ce35f ## Why is gold rebounding? Gold prices, which declined in recent weeks, are showing signs of recovery due to escalating geopolitical tensions and a weakening US dollar. Middle East conflicts are driving investors toward safe-haven assets, boosting gold demand. ## Impact of geopolitical risks Rising tensions between the US and Iran are pushing oil prices higher while supporting gold. Increased oil prices fuel inflation concerns, highlighting gold's role as a store of value during uncertain times. ## Central banks' influence Emerging market central banks continue to diversify reserves from dollars to gold. World Gold Council data shows central bank purchases remain above historical averages, providing a floor for gold prices. ## Demand from China and India Physical demand in China and India, the world's top gold consumers, remains resilient. Economic uncertainties in China boost investment demand, while India's upcoming festival season may strengthen jewellery purchases. ## US economy and rate expectations Strong labor data and persistent inflation may delay Fed rate cuts. However, geopolitical risks are countering dollar strength, creating a balancing effect for gold investors. ## Outlook for gold While technical indicators suggest short-term recovery potential, gold's proximity to record highs raises consolidation risks. Investors should monitor geopolitical developments and central bank policies closely. ## Sources covering this story - https://economictimes.indiatimes.com/markets/commodities/news/why-gold-is-showing-signs-of-reversal-after-recent-selling-pressure/articleshow/132619913.cms — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._