Core Viewpoint - The article discusses the significant decline in gold prices due to easing trade tensions between the US and UK, leading to a drop in safe-haven premiums and a shift in market sentiment towards riskier assets [1][7]. Group 1: Market Trends - As of May 12, the international spot gold price fell below $3,300 per ounce, reaching a low of $3,208 per ounce [1]. - The domestic gold ETF market saw a decline, with several ETFs dropping over 2% in value [1]. - The Shanghai Gold Exchange (SGE) gold ETF total scale was approximately 1,490 billion yuan, recovering from a low of 1,450 billion yuan after a previous high of 1,522 billion yuan [2][4]. Group 2: Investment Dynamics - The gold ETF market experienced a rapid inflow of funds in April, with a total increase of 834 billion yuan year-to-date, but saw a subsequent outflow of 65 billion yuan in early May [4][5]. - The COMEX gold futures report indicated a decrease in long positions by 1,411 contracts, while short positions increased by 752 contracts, reflecting a shift in market sentiment [5]. Group 3: Economic Factors - The article highlights that the easing of trade tensions has reduced market risk aversion, contributing to the volatility in gold prices [7]. - Despite short-term fluctuations, long-term factors such as central bank gold purchases and inflation concerns are expected to support gold prices [8][9].