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Yuekai Securities: Favorable factors supporting gold prices remain in the long term

Yuekai Securities: Favorable factors supporting gold prices remain in the long term

金十金十2026/03/22 07:27
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Golden Ten Data reported on March 22 that Luo Zhiheng, Chief Economist at Yuekai Securities, stated that in the long term, the favorable factors supporting gold prices remain. The current sharp drop in gold is not a signal of the end of the bull market, but rather a deep correction during its upward movement. Firstly, global geopolitical risks have become normalized. The diplomatic policies of the Trump administration have led to increased frequency of conflicts and intensified chain reactions, which will continue to weaken the credibility of the US dollar. Secondly, the willingness of non-US central banks to purchase gold remains strong, and is expected to further push up the central price of gold. Under the new normal of geopolitical risks, increasing gold holdings has become an important choice for non-US central banks to cope with sanction risks and enhance financial security. Central banks in emerging markets are particularly proactive, and there is still considerable room for reserve growth. Thirdly, if global economic risks shift from "inflation" to "stagnation," gold prices are expected to gain support. The surge in global energy prices directly erodes the actual consumption capacity of residents on one hand, and on the other hand, may suppress demand and curb inflation by forcing monetary policy tightening, which could eventually lead to economic downturn or even recession. In a "stagnation" environment, the strategic value of gold will be further highlighted.
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