Core Viewpoint - Concerns over the credibility of U.S. policies and fiscal sustainability are driving capital flows back to Asia, as investors seek to diversify away from U.S. dollar assets [1] Group 1: Capital Flows - The fear of a slowdown in the U.S. economy has led to a sell-off of U.S. Treasuries and the dollar, prompting investors to look for non-dollar assets [1] - De-dollarization is particularly beneficial for Asian economies, allowing central banks to ease policy rates due to strong regional currencies [1] Group 2: Investment Opportunities - The return of capital to Asia is expected to significantly boost Asian markets, as entities in Asia hold approximately $8.6 trillion in U.S. equities and fixed-income assets [1] - AllianzGI is optimistic about economies that are demand-driven and open to interest rate cuts, particularly highlighting China, India, and Australia as favorable investment destinations [1]

Market Overview - The market is characterized by a constant tug-of-war between bulls and bears, with prices experiencing both strong rallies and sharp declines. The focus should be on preserving capital and developing strategies to respond to market changes [1]. Gold Market Analysis - On June 5, during the U.S. trading session, spot gold prices significantly retreated to around $3359.5 per ounce, yet the overall trend remains strong. Factors supporting gold prices include expectations of Federal Reserve rate cuts, declining U.S. Treasury yields, fiscal concerns in the U.S., and ongoing trade and geopolitical risks [4]. - The market is currently in a cautious state, with attention focused on the upcoming non-farm payroll data. Technically, gold still has short-term upward potential, and if it can effectively break through the resistance level of $3385, it may open up further upside [4]. - Global economic uncertainties, particularly unexpected contractions in the U.S. services sector, weak employment data, and the impact of new tariffs from the Trump administration, are providing strong upward momentum for gold prices. Additionally, rising tensions between major powers and developments in U.S.-EU trade negotiations are further stimulating buying interest in the gold market, increasing the likelihood of gold prices testing the critical $3400 level [4]. Technical Analysis - Gold is currently stabilizing above the daily Bollinger middle band (3355), but the Bollinger bands are not opening up, indicating limited upward space constrained by previous highs and the upper band resistance around 3405. It is advised not to be overly bullish [5]. - A breakthrough above $3400 to $3404 should be monitored for the potential formation of a bullish moving average arrangement to initiate a one-sided trend. The 4-hour cycle shows a contracting Bollinger band and non-diverging moving averages, indicating a clear upward oscillation trend. Caution is advised against chasing highs below $3400 [5]. Trading Strategies - Suggested trading strategies include going long near $3360 with a stop loss at $3352 and a target range of $3392 to $3412. Conversely, a short position can be initiated near $3412, with additional shorts at $3415 and $3417, a stop loss at $3425, and a target range of $3390 to $3380 [7].

Core Insights - Concerns over U.S. fiscal policy and a weakening dollar are driving gold prices up, potentially leading to the largest weekly gain in over a month [1] - The gold market is experiencing a net outflow, reaching the highest level since 2013, raising questions about future price trends [1] Group 1 - The increase in gold prices is attributed to U.S. fiscal worries and a declining dollar [1] - Gold is on track for its largest weekly gain in more than a month [1] - The market has seen a net outflow that is the highest since 2013 [1] Group 2 - Future price trends of gold remain uncertain amid these developments [1]