Precious metals continue to recover, and gold stock ETFs are receiving close attention.

Ask AI · How Does Powell’s Wait-and-See Stance Affect Inflation Expectations?

News:

On the evening of March 30, Powell said that U.S. monetary policy is currently in an appropriate position, and that before the Federal Reserve evaluates the long-term impact of the Middle East conflict on the economy and inflation, it will continue to take a wait-and-see approach. He also noted that it is “too early” to say so now, and that geopolitical risks make the outlook full of uncertainty. Overall, Powell’s remarks appear to help restore sentiment in the market’s trading of inflation expectations—and even expectations for stagflation. This week, attention will be on the U.S. nonfarm employment data; continued weakness in employment data will further support prices of precious metals.

Trading:

Institutional figures pointed out that an unusual pattern has emerged in which crude oil and precious metals have moved in tandem. On the one hand, this is partly because the U.S. consumer confidence index came in below expectations, and a weakening outlook for economic fundamentals has had a certain dampening effect on concerns about tighter liquidity. On the other hand, more importantly, gold has become desensitized to the direct impact of geopolitical conflicts; at the same time, the combination of conflict-driven recession and the accumulation of debt risks will support an upward shift in gold’s long-term price center of gravity. With gold currently around 4400-4500, it has already formed a low-volatility trend, and the strength of price support has increased.

With near-term support for recent gold prices, the A-share market has delivered a relatively strong independent trend. Against this backdrop, gold-stock shares are expected to receive a “double beta” boost from “gold spot + equity rebound.”

Related product: Gold stock ETF Ping An (159322)

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