In a climate of fluctuating gold prices and heightened trade tensions, the global market is bracing for key negotiations between the United States and China this weekend. Nang Powerorn Nuwawattana Traipop, the Chief Executive Officer of Wai Alg Bullion Intergold Company Limited (YLG), emphasized on May 8, 2025, that the market is currently experiencing short-term selling pressure amid profit-taking strategies.
This pressure comes as the world anticipates critical trade discussions set to take place in Switzerland, where U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamison Greer will meet with Chinese Vice Premier He Lifeng. The negotiations are expected to address tariffs and economic relations that have been strained by recent policies.
Donald Trump, the former U.S. president, hinted at a significant announcement regarding trade with a major country, believed to be the United Kingdom, scheduled for today at 10:00 AM Thailand time. This announcement could further influence market dynamics, especially in the gold sector, which has seen prices soar to unprecedented levels this year, reaching highs of $3,500 per ounce.
YLG's assessment suggests that while gold prices might not experience a significant drop, they will likely continue to fluctuate due to ongoing trade negotiations. The company noted that the discussions could potentially lead to a gradual easing of tariffs, which have been raised to over 100% in some cases, exacerbating global economic tensions.
As the trade talks approach, both sides have shown reluctance to compromise. China has accused the U.S. of unilaterally imposing unreasonable tariffs that severely damage bilateral relations. A spokesperson from the Chinese Ministry of Foreign Affairs stated that the U.S. has repeatedly reached out for discussions, yet Trump has countered that it is China that initiated the talks.
Amid the uncertainty, YLG suggests that investors consider utilizing the Dollar-Cost-Average (DCA) method for accumulating gold, which allows for consistent investment over time despite price fluctuations. This strategy is particularly appealing to new investors, who may also benefit from YLG's innovative service, Get Gold by YLG, which enables purchases starting at just 100 baht and allows for real-time trading via smartphone.
On the geopolitical front, the upcoming meetings in Switzerland are seen as pivotal. China has expressed its readiness to engage in discussions, with Vice Premier He Lifeng emphasizing the importance of reducing trade friction. He will be in Switzerland from May 9 to May 12, where he is expected to meet with Swiss officials in addition to the U.S. delegation.
As the U.N. has pointed out, both nations must strive toward normalizing trade relations, as the ongoing trade war has no winners. Farhan Haq, Deputy Spokesman for U.N. Secretary-General Antonio Guterres, remarked that the U.N. hopes these negotiations will foster more constructive trade relations between the U.S. and China, highlighting the negative impact of trade wars on developing nations.
Trump's administration has firmly stated that it will not reduce the 145% import tariffs on Chinese goods prior to the negotiations, which adds another layer of complexity to the discussions. Observers are closely monitoring whether any progress will be made during this critical weekend.
In light of the ongoing trade tensions, many American billionaires are reportedly opening bank accounts in Switzerland. This trend is driven by a desire to diversify their assets away from the U.S. dollar, which is perceived as increasingly unstable due to rising national debt and economic uncertainties. Pierre-Alain Paratte, CEO of Alphen Partners, noted that this pattern of opening accounts has surged during periods of economic instability, including the Obama administration, the COVID-19 pandemic, and now under Trump's tariffs.
With the Swiss banking system known for its political neutrality and stable economy, it has become an attractive option for wealthy individuals seeking to protect their assets. However, the process remains subject to U.S. disclosure laws, ensuring compliance with financial regulations.
As the weekend approaches, the market remains on edge, with gold prices expected to be influenced by the outcomes of the U.S.-China trade discussions. Investors are advised to keep a close eye on the developments, as any breakthrough could significantly alter the landscape of both the gold market and international trade relations.
In conclusion, the upcoming trade negotiations between the United States and China are poised to have substantial implications not only for the gold market but also for global economic stability. As both nations prepare to engage in discussions, the world watches closely, hoping for a resolution that could ease tensions and foster a more cooperative economic environment.
