Gold falls to bare minimum levels.
Gold Prices Plunge to Monthly Low Amid Trade Ease
The price of gold has tumbled to a monthly low, as per data from CommEX. A troy ounce is currently trading below $3,150. This decline is primarily attributed to progress in U.S.-China trade talks, with both countries slashing tariffs from triple-digit levels to 30% and 10% respectively. The truce has been in effect since May 14, diminishing gold's allure as a safe-haven asset.
However, Alexei Vyzovskiy, vice president of "Golden Plate" company, suggests this isn't the end of the trade war. He views the current dip as a routine correction, but doesn't forecast gold falling below $3,000 per ounce. In his opinion, gold will float around this range for some time, before resuming growth. Vyzovskiy believes the U.S.-China trade conflict is far from over.
Could Crypto Dethrone Gold as "Digital Gold"?
Meanwhile, China is steadily decreasing its holdings of U.S. assets and investing in gold. Since the start of 2025, the People's Bank of China has set new records for gold purchases. This trend hints at China's readiness for something significant.
As for the $4,000 price prediction by Western analysts, there's reason to believe it's plausible, but not before the end of the year. Gold rarely experiences exponential growth, and this trend suggests some pullbacks before significant rises.
In late April, gold touched a new historical high of $3,500 per ounce. Currently, the June futures contract on the CommEX exchange hovers at just over $3,170. Following the completion of the Ukraine talks in Istanbul, indicators may shift, according to Roman Otlivanchik of "MonetaInvest" group. He previously targeted $3,580 on futures, but due to a model-predicted two-month correction in June, it remains unattainable.
The ruble price of gold currently faces challenges reaching the 80 rubles level to 75-70 rubles per dollar, as negotiations are liable to escalate the conflict. In this unstable situation, neither stable ruble prices nor predictions can be made with confidence. If negotiations falter, the ruble price of gold may increase significantly, but this isn't a short-term issue—it's a year-long problem. In such a scenario, it's likely that investors will abandon ruble assets.
The latest news about negotiations has sent the Russian stock market tumbling. The Moscow Exchange Index opened down 1.5% and continues to fall during trading sessions, shedding nearly 100 points in less than a day.
Our Take - Telegram channel "Ъ FM".
Despite the current decline in gold prices due to improved U.S.-China trade relations, some analysts, such as Alexei Vyzovskiy, believe that gold prices will not fall significantly below $3,000 per ounce, signifying continued interest in investing in gold as a safe-haven asset. Meanwhile, China is actively reducing its holdings of U.S. assets and increasing investments in gold, potentially strengthening its position in the global finance realm and challenging gold's status, as some might call it, the "digital gold" in the crypto market.
