Huatai Securities: Core variable for 25 years is inflation, gold price is easy to rise and hard to fall

Jinshi Data News on November 7th, Huatai Securities pointed out that the price of gold has continued to hit historical highs under the combined effect of Central Bank's gold purchase, US interest rate expectations, and geopolitical conflicts in the past 24 years. The current gold price has indeed taken into account many interest rate expectations, but there are still many catalysts for the rise of the gold price: 1. The market may underestimate the risk of inflation fluctuations in the United States; 2. The US deficit may rise, which is an important logic to support the long-term rise in gold prices; 3. Central Bank's gold purchases may continue; 4. US interest rate cuts have led to net inflows of global ETFs.

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