​EBC Markets Briefing | Gold well supported amid trade tensions

Gold retreated from its fresh high on Thursday but remained on solid footing as US stocks slumped again after Trump ordered a probe that could open up a new front in the global trade war.

China is open to trade talks if the US names a point person to represent the country and shows respect by reining in disparaging remarks, according to a person familiar with the Chinese government's thinking.

China on Wednesday appointed Li Chenggang as vice minister of commerce and a top representative for international trade negotiation, according to an official statement, replacing Wang Shouwen.

In a BofA fund manager survey this week, 42% of respondents expected gold to be the best performing asset class in 2025. Goldman Sachs forecasts that prices will jump to $4,000 by mid-2026.

The WTO warned on Wednesday that the outlook for global trade has "deteriorated sharply". the volume of world merchandise trade is now expected to decline by 0.2% in 2025, before a recovery of 2.5% in 2026.

Investment flows into Chinese physically backed gold ETFs so far this month have exceeded those for the whole of the first quarter and overtaken inflows registered by US-listed funds, WGC data showed.

Bullion has entered overbought territory with potential support around $3,260, but the uptrend will likely remain intact until all the dust has settled on US tariffs.

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