Almost all of the gains in gold this year have been reversed, and the short-term is still dominated by shocks

On June 9, since hitting a record high in late January this year, international gold prices continued to fluctuate downward. Entering June, as the Federal Reserve's interest rate hike expectations warmed up, gold's decline accelerated significantly, and almost all of the gains this year have been given back. It is worth noting that while gold prices continue to adjust, the enthusiasm of global central banks to purchase gold has not weakened, and gold's proportion in the world's official reserve assets has also continued to increase. Institutional sources believe that the surge in energy prices triggered by the US-Israel-Iraq conflict has not activated gold's traditional hedging function, but has instead suppressed gold prices by pushing up inflation expectations. In the short term, the strengthening of the US dollar and rising US bond yields will increase the opportunity cost of holding gold, and gold prices will remain under pressure. However, in the medium and long term, factors such as the continued increase in gold by global central banks, the restructuring of the international reserve system and long-standing safe-haven demand will still provide support for gold prices. (China Securities News)