The long-term allocation value of gold remains strong. The Guotai Gold ETF (518800) rose by over 1%, with net inflows for 4 consecutive days totaling nearly 600 million yuan.

Gold’s value for long-term allocation remains strong. On March 31, the Golden ETF Cathay (518800) rose by more than 1%, with net inflows for four consecutive days totaling nearly 600 million yuan.

Relevant institutions stated that, looking ahead, in the short term, gold prices are still subject to a tug-of-war sentiment driven by multiple macro factors and may continue to trade within a range; but in the medium to long term, factors such as fiscal deficits, geopolitical tensions, and concerns about monetary policy remain supportive of demand for gold. The potential room for the Federal Reserve’s tightening may be lower than market expectations. The “sustainability red line” of U.S. Treasuries and weak underlying economic momentum limit further interest-rate hikes. In addition, if energy prices continue to stay at high levels, the economic slowdown dilemma may outweigh concerns about inflation expectations, and the Federal Reserve may turn more dovish again, which would support gold prices.

Against the backdrop of excessive money creation and the monetization of fiscal deficits, the U.S. dollar credit system faces challenges. Coupled with frequent global geopolitical disruptions that are driving asset reserve diversification, demand for gold as a safe-haven asset continues to rise. The global “de-dollarization” trend may allow gold to become a new pricing anchor for the next round of pricing. Keep an eye on related products:

Gold ETF Cathay (518800): A direct tool for capturing the trend in gold prices

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