CICC: There may be upward correction space for both gold investment demand and prices

According to Jinshi reports, CICC's research report believes that the conflict between the U.S. and Iran has led to a surge in oil prices, with the risk of "inflation" taking precedence. The market expects changes in the Federal Reserve's interest rate cut path, bringing selling pressure to gold ETFs that were heavily increased last year, while liquidity shocks are also contributing to short-term corrections through the futures and options markets.

Currently, the geopolitical situation in the Middle East may be entering a critical window period, with oil prices facing a choice between rising and falling. The pricing focus in the gold market may shift to assessing the impact of supply shocks on "stagflation," and the already priced-in expectations for interest rate hikes may need to be revised.

Looking ahead, CICC believes that whether it is a pullback in oil prices after a geopolitical downgrade, a return to a loose monetary policy direction, or intensified supply shocks increasing recession pressures and triggering the safe-haven value of gold, there may be upward correction space for both gold investment demand and prices.