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].

Core Viewpoint - The recent decline in gold prices is attributed to substantial progress in US-China trade talks, leading to a decrease in gold's safe-haven premium [1][2]. Group 1: Gold Price Movement - As of May 12, the international spot gold price fell below $3,300 per ounce, reaching a low of $3,208 per ounce [2]. - The Shanghai gold futures main contract closed down 2% at 772 yuan per gram, hitting a near one-month low of 767 yuan per gram during trading [3]. - Gold prices have seen a significant drop, with international gold prices falling below $3,500, $3,400, and $3,300 within two weeks, prompting profit-taking by long traders [4]. Group 2: Gold ETF Trends - The total scale of seven gold ETFs targeting SGE gold 9999 reached approximately 1,522 billion yuan by the end of April, but decreased to 1,450 billion yuan due to falling gold prices [3][4]. - In April, gold ETFs experienced a rapid inflow of funds, with over 10 billion yuan in inflows for four consecutive weeks, totaling 498 billion yuan for the month [4]. - As of May 12, the total scale of these gold ETFs rebounded to 1,490 billion yuan, indicating some funds are entering the market to buy on dips [3][4]. Group 3: Market Sentiment and Future Outlook - Analysts suggest that the current market is characterized by high volatility and divergence, with short-term price pressures expected [6]. - The global economic landscape, including trade tensions and inflation expectations, continues to influence gold prices, with a potential for further price corrections [6][8]. - Central banks globally continue to support gold demand, with a net purchase of 244 tons in the first quarter of 2025 [7].

Economic Developments - Significant progress has been made in high-level economic talks between the US and China, with both sides reaching important consensus [1][3] - The US Treasury Secretary Scott Bessent expressed satisfaction with the productive nature of the negotiations, indicating that a detailed briefing would follow [3] - The US Trade Representative emphasized the constructive nature of the discussions, highlighting the need to address the substantial trade deficit [3] Market Reactions - Following the news of the trade talks, US stock futures surged, with the Dow Jones rising by 1%, S&P 500 by 1.2%, and Nasdaq by 1.5% [1] - The offshore Chinese yuan experienced a significant increase, rising nearly 200 points, while Asian markets opened positively across the board [1] Gold Market Dynamics - International gold prices opened lower, with a decline exceeding 1%, and prices dropping to below $3,260 per ounce [4] - COMEX gold futures also faced pressure, opening nearly 2% lower at $3,283.7 per ounce [5] - Domestic gold jewelry prices followed suit, with notable decreases in prices for major brands [6] Future Gold Price Predictions - Analysts predict short-term volatility in gold prices, but a long-term upward trend is expected, with Goldman Sachs forecasting prices to reach $3,700 per ounce by the end of 2025 and $4,000 by mid-2026 [9] - China's gold reserves have increased for six consecutive months, with a total of 7.377 million ounces reported at the end of April, reflecting a growing trend in central bank gold purchases globally [10] Regulatory Actions - Several banks have issued warnings against using credit cards for gold trading, citing risks associated with market volatility and regulatory compliance [12][13] - The banks emphasize that credit card funds should only be used for daily consumption and not for investment purposes, including gold [12][13]