Gold Rallies on ETF Demand and Central Bank Buying

That backdrop is showing up in gold ETFs. GLD closed at $422.60 on Aug. 27 after touching $424.95 the previous session, while IAU finished at $86.62, both sitting well above their 50-day moving averages and near recent highs. The 50-day moving average is still rising on both funds, and RSI readings remain elevated, pointing to persistent buying interest rather than a fading spike.

Gold miners are capturing the upside too. GDX rose to $103.69 on Aug. 27 from $88.95 on Aug. 18, a sharp move that outpaced the metal itself and signaled improving investor appetite for leveraged exposure to higher bullion prices. The ETF’s strength also suggests equity traders are beginning to price in stronger margins for producers if gold stays elevated while energy costs remain contained.

At the same time, macro crosscurrents are adding to the appeal. Adalytica’s Gold Fear & Greed Index showed sentiment at 70, neutral but still broadly constructive, while the dollar trade signal remained in fear territory, reflecting pressure on the greenback that tends to support gold. The combination of a softer dollar, sticky geopolitical and economic uncertainty, and continued reserve diversification by central banks keeps the strategic case for bullion intact.

For investors, the key question is whether ETF inflows and official buying can keep offsetting the yield headwind if rates stay high. If they do, gold could remain one of the market’s preferred defensive trades, with miners and physical-backed funds likely to stay in focus ahead of the next Federal Reserve signals and any further shift in central-bank reserve management.