IT 
ES Gold in recovery: new boost after the fall of mid-May
Gold in recovery: new boost after the fall of mid-May
21 May 2025
After swaying weeks, gold is shining again, driven by recent geopolitical turbulence and renewed investor interest in safe havens.
A week of pressure
Last week traders' profit taking on gold pushed the price of the metal down.
The critical threshold of $3,200 was tested due to the change in investor sentiment, whose appetite for risk has increased significantly. Critical point reached on May 16 with SPOT gold down 0.8% to $3,178.06 per ounce: it was the worst week since November last year.
The cut in interest rates in China and Australia, which has given new life to domestic stock markets, also weighs on the shelter asset par excellence.
Stocks in both countries rose as a result of monetary policy easing, stimulating investors' risk appetite.
The reasons for the rise
European stock indices down on Wednesday 21, due to investors' pessimism about the peace talks in Ukraine. After the meeting in Istanbul of the Russian and Ukrainian delegations, which ended with nothing, Donald Trump had a telephone interview with Vladimir Putin, from which no significant progress to end the war seems to emerge.
Meanwhile, US intelligence sources speak of an imminent attack on Iranian nuclear power plants by Israel; an event that would compromise relations with the American president, currently engaged in reaching an agreement with Tehran.
Iran is the third largest producer among OPEC (Organization of Petroleum Exporting Countries) members and an Israeli attack threatens to compromise the country’s flows, fueling further uncertainty in international markets.
In a climate of increasing geopolitical tension, gold has returned to shine, also supported by the weakness of the dollar and Chinese imports, at most for 11 months. The Asian giant’s customs data shows imports rose to 127.5 metric tons in April, an increase of 73% over March levels.
The price of gold has well exceeded the critical threshold of 3,200 dollars per ounce to be over 3,300 dollars, driven by the growing demand for shelter goods.
The chart below highlights the rise of the yellow metal in recent days, after the decline last week.
Bullish and bearish market targets
Gold futures' June (+$26.30) gains have regained the overall technical edge in the short term, and are benefiting from momentum, which is a tendency for a stock or market to hold the trend over time.
The target to be reached for the bullish is a solid close above $3,400; in contrast, the bearish aim to push futures prices below the May low of $3,123.30.
Fonti:
Gold in decline due to US-China détente
European stock exchanges down, UK inflation