Gold prices are approaching US$3,300 per ounce as skepticism resurfaces regarding the potential for a successful trade agreement between the United States and China. ANZ Economist Madeline Dunk notes that Moody’s downgrade of the US, influenced by President Trump’s tariff policies, has contributed to renewed interest in the precious metal. Concerns about a slowing economy and rising inflation, coupled with ongoing central bank gold purchases, are further supporting the upward price trend. China’s gold imports surged in April, climbing 73% month-over-month to 127.5 tonnes, demonstrating strong demand despite recent price highs.
Meanwhile, the S&P/ASX200 index in Australia has continued its upward trajectory following the Reserve Bank of Australia’s recent 25-basis-point rate cut. The index increased by 50.7 points, or 0.61%, to reach 8,394 points. Over the past five trading sessions, the ASX200 has gained 1.38% and is currently 2.57% below its 52-week high. ANZ predicts another 0.25% rate cut, which would lower the interest rate to 3.85%, a level not seen since 2023. Economist Sophia Angala suggests that easing is the “path of least regret” amid global uncertainty and encouraging inflation data. Several sectors are performing strongly, with utilities leading the gains, while gold miners such as West African Resources, Emerald Resources, Perseus Mining, and Westgold Resources also saw significant rallies.
