BlockBeats News, May 9th. As the Suez Canal blockade enters its 71st day, market expectations for progress in U.S.-Iran negotiations have increased. This has driven the price of gold to quickly rebound after breaking below $4500 per ounce, with spot gold reaching a weekly high of $4764.73 per ounce, up approximately 2.15% for the week.

Despite a marginal easing of geopolitical tensions, global funds continue to flow into gold assets. Data from the World Gold Council shows that global physical gold ETFs saw a net inflow of $6.6 billion in April, reversing the previous outflow trend. Asian market gold ETFs have seen net inflows for 8 consecutive months. Meanwhile, the People's Bank of China continued to increase its gold holdings by 260,000 ounces in April, marking the 18th consecutive month of net purchases.

Several institutions believe that the long-term bullish case for gold remains intact. Ray Dalio, founder of Bridgewater Associates, stated that in a global environment of sovereign debt expansion and currency depreciation, gold remains a crucial store of wealth. Goldman Sachs forecasts that by the end of 2026, the price of gold could rise to $5400 per ounce, while UBS expects it to approach $5900 per ounce. Bank of America maintains a target price of $6000 per ounce over the next 12 months.

Analysts point out that if U.S.-Iran tensions further ease, short-term safe-haven demand may weaken. However, factors such as a retreat in oil prices, enhanced expectations of Fed dovishness, and ongoing central bank gold purchases could still provide medium to long-term support for gold.