Gold Prices Rise 2% on Bullish Sentiment and ETF Inflows

Gold prices have demonstrated resilience in the face of recent selling pressure, transitioning back into a buying trend. The XAUUSD weekly forecast from July 14th to July 18th, 2025, highlights key pivot levels for gold buying and selling. Gold has maintained its intraday positive bias, remaining close to a multi-week top ahead of the US Consumer Price Index (CPI) release. The price has stuck to modest intraday gains around the $3,360 region, indicating a bullish sentiment among traders.

The bullish momentum in gold is supported by several factors. The upcoming US CPI data is expected to influence market sentiment significantly. Traders are closely monitoring this economic indicator as it could provide insights into the Federal Reserve's monetary policy decisions. A higher-than-expected CPI reading could fuel inflation concerns, driving gold prices higher as investors seek safe-haven assets.

Additionally, the overall risk-on atmosphere in the market, driven by Bitcoin's recent surge to new all-time highs, has contributed to the positive momentum in gold. Bitcoin's performance often serves as a tailwind for high-beta assets like gold, as long as it remains above key support levels. The market's confidence has been bolstered by Bitcoin's continuous rise, and gold has benefited from this general upward trend.

The expanding ETF story is another significant factor driving gold's price performance. The growth of gold ETFs has been rapid, with early U.S. staking ETFs experiencing inflows of over $20 million in the first week. Trading volumes have surpassed $60 million in just two days, outpacing some of the first altcoin ETF offerings. Analysts anticipate that the SEC will expedite spot ETF approvals by the end of July, which could attract even more institutional capital.

Gold's underlying trend remains favorable as long as it stays above key support levels. Any confirmation about ETF approvals could rekindle significant upward momentum, while a dip below support levels could result in short-term weakness. The $3,360 region is a crucial pivot level for gold, and traders will be closely watching this level for potential buying opportunities.

In conclusion, gold has shown resilience and shifted back into a buying trend, supported by positive market sentiment, upcoming economic data, and the expanding ETF story. Traders should closely monitor key pivot levels and economic indicators to capitalize on potential buying opportunities in the gold market.