'Sharks' sell off gold.

The world's largest gold fund, SPDR Gold Trust, sold more than 1 ton of gold during the trading session on June 3rd. Photo: Reuters .

According to data from Muavangbac.vn , the world's largest gold fund, SPDR Gold Trust, sold a net 1.14 tons of gold on June 3rd, marking the fifth consecutive day of net selling by gold giants. This move reduced the fund's holdings of the precious metal to 1,027 tons.

In contrast to the SPDR Gold Trust, the iShares Silver Trust (SLV), managed by BlackRock, returned to net buying of silver on June 3rd after selling 140 tons in the previous three sessions.

At the close of trading on June 3rd, the spot gold price fell sharply by $53.4 to $4,433.7 per ounce. Currently, the precious metal has rebounded to $4,465.8 per ounce, but is still about $20 below the peak set during the session. Similarly, the price of silver also recorded a slight increase of $0.36 to $73 per ounce.

Gold's current recovery is primarily supported by bargain buying and expectations of easing geopolitical tensions. However, the prospect of prolonged high interest rates due to inflationary pressures remains a factor hindering a strong breakout for the precious metal in the near future, according to Bloomberg.

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Since the conflict in the Middle East erupted in late February, gold prices have generally moved in the opposite direction to oil prices. The precious metal fell sharply in the early stages of the conflict and remains about 15% lower than its pre-war levels, although it has fluctuated within a narrow range for the past few weeks.

Meanwhile, after three consecutive sessions of gains, oil prices reversed course and fell following news of a ceasefire agreement between Israel and Lebanon.

According to Hebe Chen, an analyst at Vantage Markets, positive signals regarding the Israel-Lebanon ceasefire have helped ease pressure on bond yields and the US dollar in the short term, while the recent correction in gold prices is attracting bargain-hunting buyers. However, the expert warns that without a more comprehensive solution to the conflict, inflationary pressures are likely to persist.

Analysts Ryan McKay and Bart Melek of TD Securities believe that with inflation concerns continuing to drive the market to price in the likelihood of the Federal Reserve raising interest rates until at least early 2027, gold will find it difficult to mount a truly strong rebound.