The long-term logic for the rise in gold has been further strengthened, and the gold stock ETF Guotai (517400) has corrected over 3%, presenting a potential opportunity for positioning

The long-term logic for the rise in gold has been further strengthened. On April 2nd, the gold stock ETF Guotai (517400) corrected over 3%. Huayuan Securities pointed out that the core market logic for gold trading has shifted to a complex interplay of the Federal Reserve maintaining high interest rates, geopolitical risks in the Middle East, and Trump's trade policies. Although the situation in the Middle East and oil prices affect inflation expectations, the rising probability of a U.S. economic recession has reinforced the allocation value of gold as a safe-haven asset. The continuous purchasing of gold by global central banks provides support for gold prices, and gold remains in a favorable window in the medium to long term