Trade expectations lift the market.

Market Focus: Trade Talks Drive Various Asset Trends

Global markets are Hong Kong's top ten foreign exchange dealersfocusing on trilateral trade negotiations between the US, UK, and Russia, with investors hoping that an agreement could alleviate tensions and stimulate economic recovery. This optimism has put pressure on gold, a safe-haven asset, while oil prices remain near a seven-week high and US stocks have risen significantly.

Gold: Decline in Safe-Haven Demand, Gold Prices Retreat from High Levels

Spot gold fell slightly by 0.1% on Tuesday, priced at $3,324.55 per ounce, while US gold futures settled lower at $3,343.40. The expectation of a trade agreement among major economies has reduced the demand for safe-haven assets.

David Meger, Director of Metals Trading at High Ridge Futures, noted that as investors anticipate easing geopolitical tensions, gold's appeal as a safe-haven asset has diminished. RJO Futures strategist Bob Haberkorn also mentioned that investors are watching to see if gold prices can retreat to $3,100 per ounce, to find buying opportunities.

Meanwhile, spot silver fell 0.5% to $36.53 per ounce, with platinum and palladium dropping by 0.5% and 1.2% respectively.

Oil Market: High Volatility, Focus on Trade and Supply-Demand Balance

Despite a slight pullback in oil prices, US crude fell 0.5% to $64.98, and Brent crude declined by 0.3% to $66.87, yet both remain near their highest levels since April.

Analysts believe that if US-China trade talks lead to an agreement, it will boost market confidence in global demand prospects, further supporting oil prices. Previously, both Brent and US oil had consecutively reached seven-week highs.

Regarding OPEC, although overall production in May rose, some member countries, including Iraq, underperformed in production targets due to cut adjustments. Additionally, while Saudi Arabia slightly reduced supplies to Asia, it maintained high levels for the third consecutive month.

At the same time, API data showed that US crude inventory declines were less than expected, but this marks the third consecutive week of reductions, reflecting a gradual recovery in energy demand.

US Stocks: Technology and Energy Lead Gains, Market Sentiment Improves

Driven by a 5.6% surge in Tesla's stock price, all three major US stock indices rose. The S&P 500 increased by 0.55%, closing at 6,038.81 points, the Nasdaq rose by 0.63%, and the Dow gained 0.25%.

In the technology sector, Google's parent company Alphabet rose by 1.4% on news that OpenAI will expand its use of cloud services, while Microsoft saw a slight decline of 0.4%. Among the S&P 500's 11 sectors, 10 advanced, with the energy sector leading with a 1.77% gain, followed by consumer discretionary.

Investors are also awaiting the release of the US Consumer Price Index (CPI) for May to assess whether the Federal Reserve will adjust its rate path.

World Bank Lowers Economic Growth Forecast

In its latest report, the World Bank has lowered its 2025 global economic growth forecast to 2.3%, down 0.4 percentage points from the previous projection, citing rising tariffs and geopolitical uncertainties pressuring most economies.

Geopolitical Risks and Sanctions Still Unfolding

European Commission President Ursula von der Leyen announced the EU's 18th round of sanctions against Russia, targeting sectors like energy, banking, and defense. The EU also suggested lowering the price cap on Russian oil from $60 to $45 per barrel to reduce its energy revenues.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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