Gold Hits $4,130 on July 22 as Geopolitical Tensions Boost Haven Demand

According to EJFQ investment research, gold prices rose to $4,130.25 per ounce on July 22, driven by renewed geopolitical tensions in the Middle East and increased safe-haven demand. The yellow metal has gained 3.05% since the start of July, breaking its four-month losing streak and holding above the $4,000 support level.

However, institutional investors remain cautious about a sustained rally. Data from the U.S. Commodity Futures Trading Commission shows that non-commercial traders have reduced their net long positions in gold futures by more than half from this year's peak. Meanwhile, the real interest rate—represented by U.S. 30-year TIPS (Treasury Inflation-Protected Securities)—has climbed to 2.94%, the highest since the 2008 financial crisis, limiting gold's appeal as an interest-free asset. Gold and 30-year TIPS yields have shown a strong negative correlation of -0.809 year-to-date, suggesting higher real rates could pressure prices further.