Although gold prices remain significantly below last month’s historical peak of $3,500 per ounce, gold firmly held the key support level of $3,200 on Tuesday, with little evidence of strong short-selling pressure. Market analysis indicates that, against the backdrop of improving Sino-US trade relations, the gold market is demonstrating remarkable resilience.
In the precious metals market today, a broad-based increase was observed. During the US midday trading session, June gold futures rose by $31.40 to $3,259.20, while July silver futures simultaneously increased by $0.521 to $33.145. Although the US Dollar Index surged on Monday fueled by positive trade news, it retraced today, and along with the pronounced rise in oil prices, together formed a favorable environment for precious metals.
TD Securities’ commodity analysis team noted that the gold market has shown its toughness after enduring the “Trump Tariff Cycle.” Previously, the US government announced a reduction of tariffs on certain Chinese-imported goods to 30%, which caused gold prices to plunge 3% in one day on Monday. However, analysts emphasize that institutional investors’ strategic repositioning in gold, as well as the sustained strong inflows into Asian market ETFs, are laying down a new pricing support base.
Data shows that China’s gold ETF inflows have steadily increased, with the most recent trading day recording the largest single-day net inflow since April 24. Simultaneously, the rising gold ETF positions in Western markets are largely driven by institutional investors’ asset allocation shifts. The TD Securities report underscores that this change in buyer structure suggests limited downside potential for gold prices, essentially reflecting a deeper evolution in macroeconomic themes—while the US dollar has maintained its status as a reserve currency, its role as a store of value is undergoing some transformation.
Market observers point out that commodity trading advisors (CTAs) currently hold long positions and have no intention of liquidating unless there is a drastic retreat in gold prices toward $3,050 per ounce. This cautious trading strategy, balanced against the persistent high demand for gold investments, hints at the possibility of the precious metals market entering a new consolidation phase.
