Amidst global economic and geopolitical turmoil, gold prices experienced a sharp rise followed by a decline on Tuesday. After touching $3,349 per ounce during the trading session, they closed at $3,322.36 per ounce, down approximately 0.09%.
The ongoing Russia-Ukraine conflict continues to escalate, with frequent incidents such as Russia’s military strikes against Ukraine and Ukraine’s drone attacks raising investors’ concerns about global security.
A significant influx of capital into the gold market has become a crucial support for the upward trend in gold prices. Meanwhile, the World Bank has lowered its global economic growth forecast for 2025 to 2.3%, and trade barriers have intensified, further highlighting gold’s value preservation attribute.
However, the smooth progress of the China-US trade negotiations has brought optimistic expectations. The market believes that trade tensions may ease and the global economy will be boosted, weakening the demand for gold as a safe-haven asset. Additionally, the upcoming release of the US May CPI data has drawn much attention.
Factors such as inflation expectations, the probability of the Federal Reserve cutting interest rates, and the strengthening of the US dollar index have also limited the upward space of gold prices. Currently, the gold market is a mixture of bullish and bearish factors, and its future trend still depends on geopolitical factors, economic data, and the progress of trade negotiations.
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