Gold demand rises as US-Iran tensions escalate

Renewed US-Iran tensions this week pushed investors toward gold, lifting spot prices and reviving interest in gold exchange-traded funds, officials said. Dealers and fund managers reported higher safe-haven flows even as Indian retail demand showed signs of caution.

Gold ETF interest rises

Fund managers said ETF subscriptions ticked up after the geopolitical flare-up, reflecting short-term risk hedging rather than a structural asset-allocation shift. Retailers in major Indian markets said high local prices and a duty on imports have prompted many consumers to exchange old jewellery instead of buying new pieces, reducing physical demand growth.

Data showed the contrast: liquidity into paper gold has strengthened while on-the-ground purchases in India — the world’s largest consumer of jewellery by volume — remain price-sensitive. Traders noted that duty and goods-price levels are making buyers delay purchases until discounts or policy changes occur.

Expect market attention to concentrate on weekly ETF flow reports and Indian retail sales data. Watch whether safe-haven ETF inflows persist or fade once regional tensions stabilise: a sustained rise would support prices, while a rapid retreat in flows would likely pull prices back.

Monitor these indicators through July 17, 2026, for a clearer signal on whether the move is transient or the start of a broader commodities reallocation.