CICC: Gold investment demand and prices may both have room for upward adjustment

Golden Ten Data, April 4 — According to a research report from CICC, the US-Iran conflict has caused a sharp rise in oil prices, with “inflation” risks taking precedence. The market now expects changes in the Federal Reserve's rate cut path, putting selling pressure on gold ETFs that saw increased holdings last year. At the same time, liquidity shocks are amplifying short-term corrections through the futures and options markets. Currently, Middle East geopolitical tensions may be entering a critical window, leaving oil prices at a crossroads, and the focus for gold market pricing may shift to assessing the impact of supply shocks on “stagflation”. The rate hike expectations that have been partially priced in may need adjustment. Looking ahead, CICC believes that whether it’s an oil price correction after geopolitical de-escalation, a return to more accommodative monetary policy, or intensified supply shocks increasing recession risks and highlighting gold’s hedging value, both gold investment demand and prices may still have room for upward correction.