Dongwu Securities: Against the background of macro uncertainty and rising risk premium, the pricing method of funds for gold is gradually shifting towards "emotion and expectation driven".

Lu Zhe, chief economist of Dongwu Securities, pointed out that from the perspective of the medium to long-term price structure, gold has been in a continuous upward channel since 2020, but the pace of price movement has recently changed. The time it took for London gold to go from $2000/oz to $3000/oz, $3000/oz to $4000/oz, and $4000/oz to $5000/oz has shortened, and the upward slope of prices shows an accelerating trend. He believes that this phenomenon reflects that, against the backdrop of rising macroeconomic uncertainty and increased risk premiums, the pricing of gold by funds has gradually shifted from "trend-based allocation" to "emotion and expectation-driven", with prices responding more quickly to bullish factors than in historical stages. The faster pace of price movements, while reinforcing the medium to long-term upward trend, also means that sensitivity to external disturbances in the short-term has increased.