1. Total Metals Corp (TSXV:TT, FSE: O4N)
Total Metals Corp. is focused on advancing high-grade gold projects to production.
As of the close of trading on the week ending June 6, 2026, gold prices continued to show weakness. Spot gold traded around $4,315 per ounce, falling more than 22% from its record high of nearly $5,600 reached in late January, officially entering a technical bear market and erasing all its year-to-date gains.
Against the backdrop of sustained pressure on gold prices, the People’s Bank of China (PBOC) moved decisively to add to its holdings. Data released by the PBOC on June 7 showed that its gold reserves increased by another 320,000 troy ounces as of the end of May, marking the 19th consecutive month of increases – the longest streak of monthly buying since the central bank began publishing regular reserve data in 2015.
On a global scale, central bank purchases remain a key pillar of support for the gold market. A report released this week by the World Gold Council showed that after net selling in March, global central banks returned to net buying in April, adding a total of 17 tonnes of gold during the month. Poland and China led the way, purchasing 14 tonnes and 8 tonnes respectively. China’s 8-tonne purchase was the largest monthly increase since December 2024. In addition, the Czech National Bank extended its buying streak to 38 consecutive months.
The core factor behind the recent persistent weakness in gold prices has been a sharp shift in market expectations regarding the Federal Reserve’s interest rate path. Data released on Friday showed that US nonfarm payrolls for May came in significantly stronger than expected, fueling lingering inflation concerns.
This, combined with the closure of the Strait of Hormuz amid Middle East geopolitical tensions – which continues to push energy prices higher – has all but extinguished market expectations for Fed rate cuts this year, with markets now beginning to price in a possible rate hike in December. According to the CME FedWatch Tool, the probability of a December rate hike has risen to approximately 68%.
As a non-yielding asset, gold faces significant headwinds in a “higher-for-longer” interest rate environment. Meanwhile, the US dollar index and Treasury yields have both moved higher, substantially increasing the opportunity cost of holding gold. Since the escalation of the Middle East conflict, gold prices have fallen by nearly 18%.
Nonetheless, central banks including those of China and Poland continue to purchase gold steadily, reflecting the fact that amid heightened geopolitical uncertainty, official-sector strategic considerations of diversifying reserve assets have not been swayed by short-term price fluctuations. Analysts at Goldman Sachs have previously predicted that as geopolitical developments further reinforce the “de-dollarization” trend, global central bank gold buying is likely to accelerate. For the gold market, structural central bank demand is now in fierce competition with speculative selling driven by macro rate expectations.
