Overview
- Spot gold has retreated to the mid‑$4,500s per ounce, reflecting a pullback from this year’s record peaks as markets reassess demand following recent developments on May 22.
- Comments from President Trump and signs that some tankers have resumed crossings of the Strait of Hormuz have trimmed immediate safe‑haven flows into gold and eased oil‑driven inflation fears.
- A stronger U.S. dollar, rising government bond yields and futures pricing of a higher chance of further Federal Reserve action are lowering appetite for non‑yielding bullion and weighing on prices.
- Longer‑term structural demand remains due to large central‑bank accumulation, but wartime energy costs have forced some reserve managers, notably in Turkey and Russia, to sell or swap gold and add episodic downward pressure.
- Regional moves and conflicting forecasts are increasing volatility: India’s new 15% import duty has jolted domestic prices and analysts split between near‑term downside targets around $4,000 and multi‑year upside scenarios such as Deutsche Bank’s $8,000 by 2031.