Guotai Junan: Liquidity crisis easing, gold returns to uptrend

Guotai Haitong issued a research report stating that with the end of the US government shutdown, the expected decline in the US Treasury account balance has begun, and with market liquidity easing, the short-term pressure on gold has been relieved. In the long-term context of de-dollarization, after the US government shutdown ends, it is expected that key US economic data will resume disclosure, and the Federal Reserve will reassess the operation of the US economy. Although there is still some uncertainty about the magnitude and path of US rate cuts in December 25 and 26, as well as the space, the trend of US rate cuts will not change, providing mid-term support for the gold price.