Everbright Futures 0512 Gold Review: Renewed Concerns Over Silver Mine Supply Push Gold Prices Higher Intraday

On May 11, COMEX gold opened lower, dropped first and then rose during the session, closing at $4745.6/oz, an increase of 0.31%. The domestic SHFE gold night session opened higher and fluctuated, closing at 1036.44 yuan/gram, up 0.45%.

On the geopolitical front, the US-Iran ceasefire talks have hit a severe impasse. Iran claimed the US insists on “unreasonable demands,” and the Iranian parliamentary speaker stated the Iranian side's “14-point proposal” has no alternatives. Iran's armed forces are prepared to respond to any acts of aggression, while Trump described Iran’s response as foolish, and said the ceasefire agreement is “on the brink of collapse.” The differences between the sides have become openly intensified, sharply overshadowing the outlook for negotiations. Oil prices increased again, the US Dollar Index slightly rebounded, and gold prices fell more than 1% intraday. However, amid the postponement of Indonesian copper mine resumption and Peru’s energy crisis legislation taking effect on May 11, concerns about supply from mines resurfaced, prompting silver and copper prices to rebound sharply and driving gold back up intraday.

From the Federal Reserve side, Chairman Powell’s term ends on May 15 but he remains as a member, while Kevin Warsh is set to become the new chairman. The Senate may start the confirmation vote for his nomination as early as May 11. The new chairman’s first official remarks will be a major focus event; if his stance favors a gradual, more hawkish rate-cut approach, this may be negative for gold prices.

Source: Wind, Everbright Futures Research Institute

Author: Shiyueming

Professional Qualification: F03097365

Trading Advisory Qualification: Z0017563

Editor: Zhu Hennan