Gold Posts Biggest Two-day Drop Since August 2021; Silver Slumps to YTD Low
Exchange-Traded Funds, Equity Futures Lower Pre-Bell Friday Ahead of Employment Situation Report
Silver and New York gold experienced a major shock as Trump's tariff exemptions concluded 80 billion dollars "Precious Metals migration."
In the past few months, due to concerns among traders about how Precious Metals would be affected by tariffs, New York futures Gold experienced a significant premium over benchmark prices, stimulating large-scale arbitrage trading. As Gold, Silver, Platinum, and Palladium were exempt from tariffs, the arbitrage trading reversed, leading to a rapid and significant narrowing of the price difference between New York futures Gold and spot Gold, while the Silver market experienced a sharp decline in the "physical delivery price difference."
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The tariff storm from Trump has arrived! The Asia-Pacific stock markets have collectively plummeted, and Gold has reached a new historical high.
① The USA President Trump announced the imposition of high reciprocal tariffs on more than 180 countries and regions globally, causing turmoil in the Asia-Pacific markets; ② Asia-Pacific stock markets collectively plummeted, with significant declines in the Equity Indexes of Australia, Japan, and South Korea, and Gold prices hitting a new high; ③ All USA Equity Index futures plummeted, causing a collective drop of the "Seven Giants" in the US stock market after hours, with investor sentiment becoming increasingly pessimistic.
Gold Futures Keep Climbing -- WSJ
Express News | Spot Gold Hits Record High at $3,160.52/Oz
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Gold prices continue to soar, and multiple banks have once again raised the minimum purchase point for accumulated gold, with China Everbright Bank raising the threshold to 1,000 yuan.
① China Everbright Bank has adjusted the minimum investment amount for Gold accumulation personal business from 700 yuan to 1000 yuan, an increase of nearly 43%; ② Recently, multiple banks have raised the minimum investment amount for Gold accumulation business, with the adjusted amount now often around 800 yuan; ③ Several banks have stated that they are continuously monitoring changes in the Gold market and will adjust the minimum investment amount for Gold accumulation business as appropriate in the future.
Will gold prices reach 3500 dollars this year? Analysts at UBS Group believe it is unlikely.
① In the first quarter of this year, Gold prices rose strongly, surpassing $3,100; ② Wall Street has raised its expectations for this year's Gold Target Price, with optimists even predicting that Gold prices could soar to $3,500 in the third quarter; ③ UBS Group stated that multiple factors supported the rise in Gold prices, but stronger catalysts are still needed to reach the $3,500 target.
The net Inflow in a single quarter exceeded 19.2 billion dollars! Western investors are also grabbing gold.
Under the boost of risk aversion sentiment, gold prices continued to hit historical highs on Tuesday, with the Gold ETF in the USA attracting over $19.2 billion in the first quarter, setting the largest inflow since the pandemic. In addition, defensive stocks and US and German bonds also performed well.
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