Golden Finance reported that on June 2nd, the spot gold market showed a strong upward trend. As the trading progressed, the spot gold price continued to rise and successfully broke through the $3,350 per ounce mark. By around 15:15 on that day, its intraday increase reached 1.96%, with the quoted price at $3,353.09 per ounce. Meanwhile, COMEX gold was not to be outdone either, with an intraday increase of 1.65%, quoted at $3,370.2 per ounce.
The sharp increase in the price of gold this time is driven by many factors. From a geopolitical perspective, Ukraine’s attack on multiple Russian military airports over the weekend has sharply raised concerns over the geopolitical situation. Gold, as a traditional safe-haven asset, often attracts the attention of a large number of investors when market uncertainty increases. When investors are concerned about the possible economic impact of geopolitical conflicts, they tend to invest their funds in the relatively safe gold market, thereby driving up the price of gold.
In terms of economic policies, US President Trump announced that tariffs would be imposed on all car imports, and this policy has exacerbated trade tensions. The uncertainty of trade policies will have a negative impact on the expectations of global economic growth, thereby increasing the market’s demand for safe havens and prompting more funds to flow into the gold market. In addition, the market’s renewed expectations for the growth and inflation of the US economy, as well as the continuous gold purchases by central banks around the world, have all provided support for the rise in gold prices.
According to market data, some institutions hold an optimistic attitude towards the gold price trend at the end of this year, believing that the gold price is expected to break through the $4,000 mark. Fangzheng Securities pointed out that from a long-term perspective, after experiencing a phased correction, the current gold price still has the potential to maintain a long-term upward trend. Although the current gold price is at a high level and external events have eased recently, it may lead some investors to take profits at high prices or cause central banks to slow down the pace of gold purchases, triggering a short-term correction in the gold price. However, in the medium and long term, factors such as the decline in the credit of the US dollar, the start of the Federal Reserve’s interest rate cut cycle, and the continuous increase in gold purchases by global central banks will provide strong support for the gold price to continue to rise after a short-term adjustment.
In the domestic market, the price of gold has also been affected. According to the data from Tonghuashun Futures Connect, on June 2nd, the price of gold T+D was 767.91 yuan per gram, up 6.39 yuan from the previous day, representing a growth rate of 0.84%. In terms of physical gold, the retail price of some jewelry brands has once again risen above 1,000 yuan per gram. The gold prices of brands such as Chow Tai Fook, Chow Tai Seng and Jin Zhi Zun are all 998.0 yuan per gram. The gold price of Lao Feng Xiang is 1,000.00 yuan per gram and that of Chow Sang Sang is 1,004.0 yuan per gram, increasing by 0.60% compared with the previous day. The price of investment gold bars in banks has also risen. The price of investment gold bars in China Construction Bank is 785.10 yuan per gram, an increase of 0.49% compared with the previous day. The price of the Industrial and Commercial Bank of China’s Ruyi Gold Bar is 787.61 yuan per gram, with an increase of 0.60%. The price of gold bars from Bank of China is 783.66 yuan per gram, with an increase of 0.01%.
For investors, the current significant fluctuations in the gold market bring both opportunities and risks. In the context of increasing market uncertainty, investors need to closely monitor the geopolitical situation, changes in economic policies, and the release of various economic data in order to adjust their investment strategies in a timely manner. How the gold price will evolve in the future and whether it will continue to rise as some institutions expect still need to be closely monitored in terms of market dynamics.
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