On August 5, due to escalating geopolitical conflicts and personnel changes at the Federal Reserve, safe-haven demand increased, driving gold prices sharply higher. During the session, gold briefly surpassed $3,444 before slightly retreating by the close. At market close, COMEX gold futures rose 0.25% to $3,435.00 per ounce. By the close of the Asian market, the ChinaAMC Gold ETF (518850) gained 0.13%, while the Gold Stock ETF (159562) fell 0.12%.

On August 5 local time, Trump announced that he would soon reveal an interim replacement for Fed Governor Kugler and is considering four candidates to succeed current Chair Powell, ruling out Treasury Secretary Besant as a potential successor. Multiple Israeli media outlets reported on the evening of August 5 that after a limited-scope security meeting, Prime Minister Netanyahu "strongly favors a full occupation of the Gaza Strip."

FX678 analysis suggests that the rally in the gold market is driven by expectations of interest rate cuts, inflation pressures from tariffs, and Fed personnel changes. In the short term, gold prices are expected to remain strong, supported by safe-haven demand and rate cut expectations, with the recent high of $3,390 per ounce likely to be breached. However, if next week’s U.S. August inflation data falls short of expectations or Fed personnel changes take an unexpected turn, gold prices may face a correction risk. In the long run, global economic uncertainty and geopolitical risks will continue to support gold, with Trump’s trade policies and the Fed’s monetary policy direction being key variables. Investors should closely monitor CPI data expectations, trade negotiation progress, and Fed appointment developments, while paying attention to Fed officials’ remarks to seize investment opportunities in the gold market.