According to The Kobeissi Letter, gold funds experienced a record net inflow of approximately $8 billion three weeks ago, pushing the four-week moving average of inflows to an all-time high of $4 billion (source: The Kobeissi Letter, May 5, 2025). This surge in capital reflects a robust flight to safety trend, indicating heightened investor demand for gold as a hedge against market uncertainty. Traders should note that this unprecedented inflow level could further drive gold prices upward and may signal sustained bullish sentiment in safe-haven assets.

According to Miles Deutscher, recent comments from Trump regarding China and Powell have potentially stabilized markets, suggesting a temporary peak in gold prices. Traders should consider a possible shift towards riskier assets until mid-May, with a likely rotation back into safe-haven assets like gold by summer, unless geopolitical tensions arise.