After a strong start, the price of gold slipped twice to around $5,060 during this trading week. Now, it appears that gold prices might manage to stay just above $5,100 heading into the weekend, continuing the persistent sideways movement of the past five weeks.

Rick Rule, a seasoned investor and the president and CEO of Rule Investment Media, warned that the recent downturn in the US dollar is far from over. He predicts that within the next decade, the US dollar will lose 75% of its "purchasing power," while gold prices could surge to $12,000 per ounce.

Recently, Kinger Lau, Chief China Equity Strategist at Goldman Sachs, released a research report titled "The Return of China's Private Enterprises: The Tide Has Turned". Lau pointed out that driven by various macro, policy, and micro factors, the medium-term investment prospects for China's private enterprises are improving.

Macro News 1. From June 9 to 10 local time, He Lifeng, the Chinese lead negotiator for China-US economic and trade talks and Vice Premier of the State Council, held the first meeting of the China-US economic and trade consultation mechanism with Beth Van Duyne, the US lead negotiator and US Secretary of the Treasury, Gina Raimondo, US Secretary of Commerce, and Katherine Tai, US Trade Representative, in London, UK. Both sides engaged in candid and in-depth dialogue, exchanged in-depth views on economic and trade issues of mutual concern, reached a consensus in principle on the framework of measures to implement the important consensus reached during the phone call between the heads of state of the two countries on June 5 and to consolidate the outcomes of the Geneva economic and trade talks, and made new progress in addressing economic and trade concerns of both sides. 2. Li Chenggang, China's International Trade Representative and Vice Minister of Commerce, said in London, UK, on the evening of June 10 that over the past two days, the Chinese and US teams had conducted in-depth exchanges and reached a framework on implementing the consensus reached during the phone call between the heads of state of the two countries on June 5 and the consensus reached during the Geneva talks. 3. At yesterday's regular press conference of the Ministry of Foreign Affairs, Lin Jian, a spokesperson, introduced that the Ministerial Meeting of Coordinators for the Implementation of the Outcomes of the Forum on China-Africa Cooperation (FOCAC) was held in Changsha, Hunan Province. President Xi Jinping sent a congratulatory letter to the meeting, announcing that China would implement the measure of zero tariffs on 100% of tariff items for products from 53 African countries with diplomatic relations with China. 4. At yesterday's regular press conference of the Ministry of Foreign Affairs, a reporter asked about CK Hutchison Holdings' sale of overseas port assets. Lin Jian stated that China has consistently and resolutely opposed economic coercion, hegemony, and bullying. Lin Jian reiterated that regarding the navigation of vessels from relevant countries, China will, as always, respect Panama's sovereignty over the canal and recognize the canal's status as a permanently neutral international waterway. Industry News 1. From the evening of June 10 to the afternoon of June 11, 15 original equipment manufacturers (OEMs), including BYD, China FAW Group Corporation, Geely Auto, and Xiaomi Auto, have successively issued statements committing to uniformly controlling the payment period for suppliers within 60 days. This move aims to accelerate the efficiency of capital turnover in the industry chain, ensure the stability of the industry chain and supply chain, fulfill the responsibilities of leading enterprises, and promote the high-quality development of the automotive industry. 2. The General Offices of the Ministry of Industry and Information Technology and the National Development and Reform Commission issued a notice on carrying out the cultivation work of pilot-scale production capacity construction platforms for biomanufacturing. The notice proposed that, based on the current status of biomanufacturing industrialisation and the needs of technological development, and focusing on the shortcomings and pain points in the pilot-scale production links of various fields of biomanufacturing, pilot platforms for key product areas such as food and additives, biopharmaceuticals, cosmetics, chemicals, energy, and enzyme preparations should be cultivated according to the characteristics of technological process equipment, effectively driving the coordinated innovation and development of upstream and downstream enterprises in the industry chain. 3. According to informed sources, with the continuous rise in the popularity of IPs, Pop Mart urgently sought workers to resume work after the Chinese New Year to expand its capacity to meet the surging consumer demand. The individual believes that for brands, when market demand far exceeds the supply chain's response speed. 4. Industrial Securities held a cadre conference yesterday, announcing that Su Junliang, the former chairman of Huafu Securities, would assume the role of Party Secretary of Industrial Securities. Due to age limits for the position, Yang Huahui would no longer serve. Yang Huahui had led Industrial Securities for eight years. According to the reporter, Yang Huahui would have other positions arranged for him subsequently. 5. Nine departments, including the Shanghai Headquarters of the People's Bank of China, jointly issued the "Notice on Leveraging the Role of International Green Finance Hub to Support the Construction of a Beautiful Shanghai". The Notice proposed exploring financial support models for ecological and environmental protection projects in Shanghai, continuously building the Shanghai Green Finance Service Platform, and improving the Shanghai Green Project Library. 6. Data released by the China Association of Automobile Manufacturers (CAAM) showed that in May 2025, China's automobile production and sales reached 2.649 million units and 2.686 million units respectively, up 1.1% MoM and 3.7% MoM, and up 11.6% YoY and 11.2% YoY. From January to May, automobile production and sales reached 12.826 million units and 12.748 million units respectively, up 12.7% YoY and 10.9% YoY. 7. Benefiting from the deep integration of AI large models and augmented reality technology, the smart glasses market has been heating up recently, with strong sales both online and offline. The head of the digital business department of an e-commerce platform introduced that the smart glasses market had shown explosive growth, with trading volume increasing more than eightfold YoY. 8. The General Office of the People's Government of Liaoning Province issued the "Implementation Plan for Promoting Innovative Development of Artificial Intelligence in Liaoning Province". It proposed that by 2027, the province's computing infrastructure construction system would be basically formed, achieving a computing power scale of over 5000 PFLOPS, and the core industry scale of artificial intelligence would reach 100 billion yuan. Corporate News 1. *ST Yazhen announced that due to multiple instances of abnormal fluctuations in stock trading, it would suspend trading for verification starting today. 2. Industrial Securities announced that as of now, it had not received any information regarding a "merger with Huafu Securities". 3. Shuangliang Eco-Energy announced the signing of a 450 million yuan sales contract for green electricity-based hydrogen production systems. 4. *ST Jinbi announced that Yuanyichengwu would become the company's controlling shareholder, and its stock would resume trading. 5. Hesheng New Materials announced plans to invest 250 million yuan in ARM server processor chip company Yizhi Electronics. 6. Junshi Biosciences announced that the clinical trial application for its controlled subsidiary's JT118 injection had been accepted, intended primarily for the prevention of monkeypox virus infection. 7. ST Red Sun announced that it would remove other risk warnings starting from June 13, and its stock abbreviation would be changed to "Red Sun". 8. Aurora Optoelectronics announced that the company has a solid position in the backlight module for Switch 2 and will increase R&D efforts in high-end products in the future. 9. KDLI announced its intention to jointly invest with VEICHI Electric and others to establish Suzhou Yizhi Smart Drive Technology Co., Ltd. 10. Yinlun Machinery announced its intention to contribute 10 million yuan to jointly establish Suzhou Yizhi Smart Drive Technology Co., Ltd. 11. Tinci Materials announced its intention to invest in and construct an integrated production base for electrolytes and raw materials in Morocco. 12. Changshan Pharmaceutical stated on an interactive platform that the suspension of the listing of Abenatide is unrelated to the combined listing approval for weight loss. Global Markets Most European and US stock markets fell, while international crude oil futures settlement prices surged over 4%. US stocks moved downwards after a higher opening, with all three major indices closing lower. The Nasdaq fell 0.5%, the S&P 500 fell 0.27%, and the Dow Jones Industrial Average fell by 1 point. Intel fell over 6%, marking its largest single-day decline in two months. Oklo surged nearly 30%, hitting a record closing high, as the company reached a nuclear power agreement with the US Air Force. Space technology company Voyager Technologies Inc. (VOYG) surged over 82% on its first day of trading in the US IPO. Popular Chinese ADRs had mixed changes, with the Nasdaq Golden Dragon China Index rising 0.08%. Major European stock indices closed with mixed changes, with the German DAX30 rising 0.04%. International crude oil futures settlement prices surged over 4%. WTI crude oil futures for July rose 4.88%, and Brent crude oil futures for August rose 4.33%. COMEX gold futures rose 0.9%, while COMEX silver futures fell 0.76%. Investment Opportunities Reference 1. Officially entering the mass production stage, a key milestone in the construction of a large-scale aviation equipment system On June 11, the large amphibious aircraft AG600, independently developed by the Aviation Industry Corporation of China (AVIC), was awarded the Production Certificate (PC) by the Civil Aviation Administration of China (CAAC) in Zhuhai, Guangdong. This marks the official entry of China's large amphibious aircraft into the mass production stage and is a key milestone in the construction of China's large-scale aviation emergency rescue equipment system. Founder Securities pointed out that the civil aircraft manufacturing industry holds profound strategic significance for the country, directly linked to national economic growth, employment opportunities, and technological progress. This industry not only significantly boosts economic growth but also drives substantial employment and plays a huge role in promoting technological development, particularly in the fields of new materials, new energy, and advanced electronic technologies. The development level of the large aircraft industry has become an important indicator of a country's technological and industrial strength, as well as its international competitiveness. Additionally, the large aircraft industry also holds significant military application value, playing a crucial role in enhancing the quality and level of the national defense industry. 2. Smart dexterous hand developed by Chinese researchers achieves human-like adaptive grasping for the first time According to media reports, the breakthrough bionic dexterous robotic hand, F-TAC Hand, was recently published in the international journal Nature Machine Intelligence. This system integrates high-resolution tactile sensing across 70% of its palm area, achieving human-like adaptive grasping capabilities for the first time and marking a significant leap forward in robotic intelligence and its ability to interact in real dynamic environments. This breakthrough was jointly achieved by the Beijing Institute for General Artificial Intelligence and Peking University. Huaxi Securities believes that dexterous hands are crucial for the practical application of humanoid robots, and subsequent updates and iterations will still present significant technical challenges. Producers with the capability to design and manufacture dexterous hands are expected to have a stronger voice in the industry chain and may lead in profitability. Additionally, to enhance the functionality of dexterous hands, the demand for key components such as lead screws, reducers, motors, tendon cables, and tactile sensors will increase. The firm remains optimistic about technology-leading enterprises with advanced industrial layouts. 3. Another solid-state battery conference is set to take place in June, with institutions affirming the industry's long-term development trend The "5th China International Solid-State Battery Technology Conference & 2025 Advanced Battery Materials and Intelligent Equipment Technology Exhibition" will be held in Hefei from June 19-20, 2025. The conference will feature six themes covering solid-state batteries, cathode and anode materials, sodium-ion batteries, battery safety, battery recycling, lithium resources, as well as testing instruments and equipment enterprises. It will comprehensively showcase the latest research, technologies, processes, and equipment advancements, and delve into the future development directions of the new energy industry. Recently, CATL's 21C Innovation Lab published its research findings on lithium metal batteries in the international journal Nature Nanotechnology. This research is expected to accelerate the transition of solid-state batteries from laboratory to large-scale application. Yang Rui from Huaxi Securities believes that with the maturation of battery technology and the improvement of the supporting industry chain, new solid-state-related products are expected to be launched successively, capacity construction will continue to progress, and terminal performance is anticipated to be continuously validated, accelerating the industrialisation process. Yao Yao from Sinolink Securities believes that the long-term development trend of solid-state batteries is certain, and attention should be paid to incremental segments. Recent industry changes focus on the fibrillation of raw materials and lithium metal anodes. 4. Industry leader launches AI medical product matrix to meet users' diverse healthcare management needs Recently, at a launch event, Ping An Good Doctor announced the official rebranding of Ping An Health Medical Technology Co., Ltd. to "Ping An Good Doctor." The company unveiled its annual medical and health service brand and introduced a comprehensive "7+N+1" AI medical product matrix that covers all scenarios, cycles, and ecosystems to meet users' diverse healthcare management needs. AI technology can not only assist doctors in identifying fracture lesions but also aid in early disease screening. Nowadays, it is also taking on the crucial task of intelligent patient triage. According to Southwest Securities, statistics show that over 830 hospitals nationwide have successively completed the localized deployment of DeepSeek-R1, driving the digital and intelligent transformation of hospitals. Application scenarios include monitoring medical quality, optimizing hospital resource allocation, assisting in diagnosis, and ensuring data security. The comprehensive open-sourcing and multi-domain adaptation of the domestic large model DeepSeek-R1 marks a new stage of technological integration and industry restructuring in AI healthcare, drawing attention to the accelerated development and investment opportunities in the AI healthcare sector.

Bank of America strategist Michael Hartnett warned that global stock markets are approaching a technical "sell" signal after hitting new highs this week. He believes that a 20% surge in just two months indicates an overheated market. Hartnett cited data on fund flows and market breadth as evidence that investors are pouring into risky assets, with position allocations becoming increasingly stretched. Traders typically view this phenomenon as a bearish signal, as it may suggest that the market's buying power is nearing exhaustion, making prices vulnerable to corrections. Hartnett pointed out that data shows inflows into stocks and high-yield bonds have reached 0.9% of total assets over the past four weeks. He said that if this figure rises above 1%, it would be a sell signal for investors. Meanwhile, Hartnett said the market is also approaching an "overbought" zone. Currently, about 84% of national stock indices are trading above their 50-day and 200-day moving averages, and when this ratio reaches 88%, it will trigger his sell condition. The report also cited data from EPFR Global, stating that global equity funds have attracted inflows of approximately $515 billion year-to-date, on track to record the second-highest annual inflows in history. On a weekly basis, cash funds attracted inflows of $94.8 billion this week, the highest level since January. Bank of America's data suggests that traders are uneasy about the recent rapid pace of stock market gains. The US stock market has recently rebounded sharply, with the S&P 500 index closing above 6,000 points on Friday for the first time since February 26. The Trump administration's tax cut policies, a more lenient stance on tariffs, and robust economic data have collectively fueled market optimism. It should be noted that Hartnett has been bearish on US stocks this year and has called for investors to prioritize bond allocations. In a report on May 8, he said that the current rebound in US stocks may have already ended. However, since then, the S&P 500 index has risen by about 6% over a one-month period.

[SMM Lead Morning Meeting Summary: As the Delivery Date Approaches This Week, Spot Discounts for Lead Ingots May Narrow]...Under the dual influence of lead ingots being transferred to delivery warehouses and downstream purchases, the in-plant inventory of primary lead smelters has decreased. As the delivery date approaches this week, it is expected that suppliers will increase the transfer of stocks to delivery warehouses. After the transfer, the available supply in the spot market will relatively decrease, and there is an expectation that spot discounts will narrow. Regarding secondary lead, the issue of losses remains the primary concern. Production cuts by secondary lead smelters have increased, and the supply gap for scrap batteries may slightly improve. It is expected that transactions involving secondary refined lead at a premium will decrease...

On Friday (June 6), the Reserve Bank of India (RBI) significantly reduced its benchmark policy interest rate, cutting it by 50 basis points from 6% to 5.5%, the lowest level since August 2022. The new interest rate is below the median expectation of 5.75% from a media survey, marking the third consecutive interest rate cut by the RBI since February. RBI Governor Sanjay Malhotra explained at a press conference that the central bank chose to implement this interest rate cut in light of the significant slowdown in inflation and economic growth that is "below our expectations" amid a challenging global environment and heightened uncertainties. He also announced that the RBI had decided to reduce the reserve requirement ratio (RRR) by 100 basis points to 3%. Following the unexpected interest rate cut by the RBI, the Indian stock market surged, reversing an opening decline of 0.3% to a current gain of 0.87%. Additionally, the country's Nifty Bank Index also rose by 0.95%, as the reduction in the RRR is expected to free up more capital for the central bank to boost credit. Monetary policy stance adjusted to neutral India's inflation is largely on a downward trend, providing the RBI with room to cut interest rates. The latest headline inflation rate in April was 3.16%, the lowest level since July 2019. The RBI had previously revised down its inflation expectations for the current fiscal year from an earlier estimate of 4% to 3.7%, and Governor Malhotra indicated that inflation is likely to fall below the target. However, given the magnitude of the interest rate cut, the RBI stated that there is limited room for monetary policy to support growth and will adjust its monetary policy stance from "accommodative" to "neutral." The RBI governor said, "From now on, (the Monetary Policy Committee) will carefully assess upcoming data and evolving prospects to chart the future course of monetary policy, aiming to achieve an appropriate balance between economic growth and inflation." Regarding India's economic outlook, Malhotra pointed out, "The Indian economy presents a picture of strength, stability, and opportunities." However, the central bank maintained its full-year GDP growth forecast for the current fiscal year at 6.5%, a significant slowdown compared to the 9.2% growth rate in the previous fiscal year. The RBI also highlighted growth concerns at its previous meeting due to tariff threats from the US.

As the US-China trade tensions eased in May, Asian stock markets attracted significant inflows of foreign capital during the month. According to LSEG data, foreign investors collectively purchased approximately $10.65 billion worth of stocks in Asia in May, marking the largest monthly net purchase since February 2024. The data showed that stock markets in India, South Korea, Indonesia, Vietnam, the Philippines, and Taiwan, China, all recorded capital inflows. Among them, Taiwan, China's stock market saw an inflow of $7.28 billion in overseas funds in May, setting a record for the largest monthly net purchase since November 2023. India recorded an inflow of $2.34 billion, marking the largest monthly net purchase since September 2024. In addition, stock markets in South Korea, Indonesia, and the Philippines also experienced net inflows of foreign capital, amounting to $885 million, $338 million, and $290 million, respectively, while the Thai stock market faced a net sell-off of $491 million. Optimistic Outlook Wall Street giant Goldman Sachs stated that it has raised its earnings growth forecast for the MSCI Asia Pacific (ex-Japan) index to 9% for both 2025 and 2026, citing stronger macroeconomic growth in China and the US, which is driving growth in the Asia-Pacific region. On the other hand, global investors' hesitation towards US assets is also a factor contributing to the rise in Asian markets. Due to the US government's unresolved debt issues, many investors previously sought safer havens in Europe. However, data shows that Italy, France, and the UK are also facing debt challenges, making the Asian market relatively more attractive. This also means that Asian countries have greater policy space to implement more fiscal stimulus measures to boost consumption and financial markets. In addition, the rapid growth of emerging tech companies in Asia also provides investment options for investors seeking high growth. Low valuations are also a major driving factor. As of May 23, the 12-month forward price-to-earnings (P/E) ratio of the STOXX50, a major European stock index, was 15.4 times, significantly lower than the 21.0 times of the S&P 500 index. The P/E ratio of the MSCI Asia (ex-Japan) index, a major emerging Asian stock index, was even lower, at just 13.4 times. However, Invesco warned that in H2 2025, Asian markets will continue to be affected by macroeconomic risks, which may outweigh the positive impact of domestic drivers in the short term. Nevertheless, another positive factor is the continued weakness of the US dollar. The appreciation of Asian currencies will continue to attract foreign capital inflows and support domestic consumption.

On Thursday local time, following the achievement of its inflation target and repeated blows to the economy from Trump's tariffs, the European Central Bank (ECB) cut interest rates by 25 basis points as expected, marking the eighth rate cut within a year. Specifically, the ECB reduced the deposit facility rate by 25 basis points to 2%, while the main refinancing rate and the marginal lending rate were lowered from 2.4% and 2.65% to 2.15% and 2.4%, respectively, reaching their lowest levels since early 2023. Following the announcement of the interest rate decision, the euro rose sharply against the US dollar in the short term before pulling back. The yield on Germany's 10-year government bonds fell by approximately 5 basis points to 2.48%, while European stock markets showed no significant fluctuations. In its statement, the ECB said, "Inflation is currently close to the Governing Council's target of 2%. Although uncertainties surrounding trade policy are expected to weigh on business investment and exports, increasing government investments in defense and infrastructure will increasingly support medium-term economic growth." US President Trump's tariff policies have cast a shadow over global growth, driving up the euro exchange rate and pushing down energy costs. While this is accelerating the pullback in inflation, some now fear that Europe may respond by retaliating with tariffs and increasing spending, which could further complicate the situation. On the inflation front, the ECB expects inflation to remain at 2.0% this year and 1.6% next year, lower than its March forecast. However, the bank also noted that inflation in the eurozone faces greater uncertainty than in the past. Additionally, the ECB revised down its economic growth forecast for 2026, projecting that the GDP of the 20 eurozone countries will grow by 1.1% next year, down from the 1.2% forecast three months ago. Nevertheless, it still expects GDP growth of 0.9% in 2025, due to stronger-than-expected economic growth in the first three months of this year. Despite ECB President Christine Lagarde stating that risks to economic growth remain tilted to the downside, she also noted that factors such as a strong labour market, rising real incomes, and improved financing conditions are helping consumers and businesses weather the impact of a turbulent global environment. Lagarde pointed out that despite the decline in energy costs and the recent strengthening of the euro, inflation is expected to return to near the target level by 2027. Prospects for trade negotiations Amid escalating geopolitical tensions, eurozone businesses and policymakers are facing increasing uncertainty. Trump's tariff policies are a major concern, as tariffs on certain industries could deal a severe blow to Europe. Currently, most EU exports to the US face a 10% tariff, but this rate could rise to 50% in July if trade negotiations fail. German Chancellor Merz is set to meet Trump at the White House later on Thursday, with trade being one of the main topics of discussion between the two sides. ECB officials have said that the impact of tariffs on inflation is not yet clear and may depend on whether and how the EU retaliates. The EU's retaliatory measures are currently on hold, but EU leaders have indicated that they are prepared to implement them if necessary. There are also questions about how the plans by European countries to increase defense spending will affect the economy. During this meeting, the ECB did not pre-commit to a specific interest rate path. Irene Lauro, an economist at Schroders Investment, commented, "The ECB cut interest rates by 25 basis points today as expected, but we do not anticipate any follow-up moves next month." She added that since there have been no signs so far that tariffs are weakening the economy, they are more likely to pause the interest rate cut cycle. However, Natasha May, global market analyst at JPMorgan Asset Management, said, "With inflationary pressures fading rapidly and growth headwinds intensifying, the case for the ECB to cut interest rates again in July is very clear."

Bank of America Securities recently stated that, based on expectations of a continued depreciation of the US dollar, emerging market assets are expected to achieve double-digit returns this year . "We can easily maintain double-digit returns this year because we believe the US dollar is the most important driver and that US long-term bonds will stabilize," said David Hauner, head of Global Emerging Markets Fixed Income Strategy at BofA Securities. BofA Securities is optimistic about Eastern European currencies and stocks. "Against the backdrop of a weakening US dollar, the euro is the best-performing major currency, which generally implies that currencies across the European time zone should perform best, as these currencies benefit the most when the euro appreciates," Hauner said. Hauner also noted that, in terms of fixed income, Brazil remains his top pick due to its very high interest rates and the possibility of interest rate cuts before the end of the year. Currently, the US dollar exchange rate is near a two-year low. Several Wall Street investment banks, including Morgan Stanley and JPMorgan Chase, expect the US dollar to weaken further due to possible interest rate cuts by the US Fed, a slowdown in US economic growth, and ongoing uncertainties in fiscal and trade policies. This could accelerate the flow of funds from US assets to developing countries. So far this year, the rebound in emerging markets has been mainly supported by local currency bonds and stocks. Domestic sovereign bonds have already delivered an average total return of 5.7% for investors, with Brazil's carry trade frenzy driving a 20% gain. Returns in 10 other countries have also reached or exceeded 10%. Meanwhile, emerging market stock markets have ended a seven-year underperformance streak relative to the US market. Led by China and India, the MSCI Emerging Markets Index has outperformed the S&P 500 Index by 7%. Despite the positive returns on emerging market assets this year, Hauner said that investors' positions in emerging market asset classes remain light, a situation that could change in the coming months . "People need to see several consecutive months of upside surprises from emerging markets, right?" Hauner said. "They've lost a lot of money in emerging market assets in the past, so, you know, they just need to gradually build more confidence over time." Bank of America also recently predicted that emerging markets will usher in a "new bull market." A team of BofA strategists led by Michael Hartnett stated in a report at the time, "A weaker US dollar, US bond yields peaking, China's economic recovery... nothing is better for the outlook of emerging market stocks." According to a recent report from the bank, global equity markets experienced the largest weekly net outflow of funds for the year in the week ending May 28, amounting to as much as $9.5 billion, while emerging market stocks saw the largest net inflow of funds for the year, totaling $2 billion, during the same period.