Trump's Tariff Policy Faces Resistance, Gold Price Falls Below $3,300 During Trading, Lingbao Gold Drops Over 6%

Today, gold stocks continued their downward trend. As of press time, Lingbao Gold (03330.HK), Chifeng Gold (06693.HK), Tongguan Gold (00340.HK), and Shandong Gold (01787.HK) fell by 6.41%, 4.65%, 3.70%, and 1.83%, respectively.

Note: Performance of gold stocks

In terms of news, on May 28 local time, the US Court of International Trade ruled that the "Emancipation Day" tariff policy implemented by the Trump administration, invoking the International Emergency Economic Powers Act, constituted an ultra vires act and issued a permanent injunction.

The Court of International Trade, located in Manhattan, New York, stated that the US Constitution grants the US Congress exclusive authority to regulate trade with other countries, and that the emergency powers claimed by the President to protect the US economy do not override these authorities. The lawsuit was filed by the Center for Justice and Democracy, a US non-profit, non-partisan litigation organization, on behalf of five small US businesses affected by the tariffs, marking the first major legal challenge to Trump's tariff policy.

This ruling significantly alleviated market concerns about the escalation of global trade frictions, causing US stock futures to rise in response, while gold, as a safe-haven asset, faced selling pressure. As of press time, COMEX gold fell by 1% to $3,289.1.

Note: Performance of COMEX gold

How do institutions view the subsequent performance of gold prices?

CITIC Futures pointed out that although recurring trade frictions may support gold's short-term fluctuation upward, factors such as the delay in the US Fed's first rate cut and the absence of a US debt credit risk outbreak make it difficult for gold prices to achieve a breakthrough rally.

Jinrui Futures believes that after the postponement of Trump's tariff implementation, the market has already digested the worst of the negative news, and technical indicators suggest that gold prices need to undergo a period of consolidation with reduced volatility.

Goldman Sachs, however, goes against the trend by recommending a long-term increase in gold allocation, citing rising institutional credibility risks in the US and sustained central bank gold-buying demand.