Zhongjin: It is recommended to maintain an overweight position in gold, seize short-term trading opportunities and liquidity overflow opportunities.

China International Futures Ltd. pointed out that the gold price has risen significantly this year, with high valuation. The expectation of loosening by the Federal Reserve in early 2026 could be a source of risk. Considering that the Federal Reserve will likely accelerate easing again next year, if the gold price significantly corrects early next year, it could be an opportunity to increase positions at the low. After the substantial rise in gold, copper, silver, and other commodities have also shown strong performance recently, partly reflecting the liquidity spillover effect of gold. In addition, commodities can also hedge against geopolitical risks and the risk of overheating in the U.S. economy. We suggest increasing exposure to commodities, especially favoring non-ferrous metals. At the same time, we remind that silver and other metals have smaller market sizes and poorer liquidity relative to gold, so if gold experiences volatility next year, the risk of correction is also greater. It is recommended to practice risk control and avoid blindly chasing the rise.