This week, gold has entered a correction phase. On the evening of the 15th, spot gold fell below the key $3,200 per ounce mark, with the high-level pullback exceeding $200 per ounce.

In response, Duan Enjian, a precious metals researcher at Dahua Futures, noted that the recent easing of U.S.-China trade tensions means that, over the next 90 days, the U.S. will import large quantities of goods from China to replenish its inventories. As a result, economic data from both countries for May and June will likely improve significantly, boosting market sentiment and cooling down the enthusiasm of gold bulls. However, the rapid downward trend in gold prices may be coming to an end, and the market is expected to enter a period of volatile adjustment going forward.

“From a long-term perspective, this round of gold’s ‘bull market’ began in 2018. During this period, gold prices have experienced several significant pullbacks, with the largest drop approaching 20%, and the duration of these pullbacks has varied from as short as half a month to as long as six months. Currently, the maximum decline in spot gold prices is close to 10%. However, based solely on this decline, it’s still too early to conclude that gold prices have reached a temporary bottom,” said Liu Shiyao, a precious metals researcher at Zijin Tianfeng Futures.

From a trading perspective, can gold continue to be held as a “safe-haven asset” at present?

  　Duan Enjing believes that the U.S. military and economic power is steadily declining. On the military front, the U.S. is gradually shrinking its sphere of influence overseas. Economically, the U.S. is grappling with industrial hollowing-out and mounting debt problems, which in turn are prompting adjustments or restructuring of the global economic and trade order, as well as a loosening and eventual breakdown of the U.S. dollar-based monetary system. Throughout this process, gold’s monetary and safe-haven attributes will fully come to the fore; therefore, in the long term, the “bull market” for gold will continue.

“Recently, the U.S. has frequently adjusted its foreign policy, severely impacting global economic growth prospects, triggering sharp fluctuations in financial markets and causing gold prices to surge significantly. In the short term, the momentum driving further increases in gold prices has weakened, making price volatility inevitable. Over the next three months, gold prices are expected to experience wide-ranging fluctuations. In September, driven by global trade uncertainties and expectations of a Federal Reserve interest-rate cut, gold could enter a new round of upward trend,” said Duan En Dian.

“Short-term gold prices are more likely to fall than to rise,” said Cong Shanshan, a precious metals analyst at Huishang Futures. Considering favorable factors such as the potential for reversals in U.S. tariff policies, the approaching timing of Federal Reserve interest-rate cuts, and robust demand for gold, gold prices are expected to remain strong in the long term, making it still worthwhile to allocate capital to gold over the long run. Investors should take into account their own risk tolerance, avoid high-leverage trading, and closely monitor policy developments and market signals.

After the sharp pullback in gold prices, some investors believe it’s now an opportune time to enter the market. In response, Duan Enjing cautions that gold prices may face volatile adjustments over the next two months, making trading more challenging. Investors with a higher risk appetite can engage in range-bound trading based on technical indicators and the broader macroeconomic backdrop—but they must carefully manage their positions and set appropriate stop-loss and take-profit levels. Spot traders should absolutely avoid making short-term trades based solely on long-term trends or blindly buying into the market, as this could easily lead to emotional swings and losses if market conditions fail to meet expectations. Moreover, during periods of unusual events, gold prices tend to fluctuate dramatically; traders must refrain from using leverage beyond their risk tolerance and always prioritize risk management above all else.

Liu Shiyao believes that investors should do the following three things before entering the market: First, clearly define their investment goals and determine whether they are pursuing short-term investments or long-term allocations. For short-term investments, products such as gold futures and gold ETFs are suitable choices; for long-term investments, gold bars are a better option. At the same time, investors need to allocate their funds appropriately based on their own risk tolerance, avoiding excessive concentration of assets. Second, set stop-loss and take-profit levels to lock in some profits and limit losses, thereby preventing the reversal of gains due to significant market fluctuations. Third, maintain a calm and rational mindset and avoid blindly following others’ actions. During periods of heightened market volatility, investors should adopt a cautious trading strategy and refrain from chasing rising prices or cutting losses hastily.