Huatai Securities: The logic of reconfiguring gold assets in the medium to long term remains solid, focusing on the opportunity for recovery after the recent decline in gold prices stabilizes.

Sina Finance news on March 31, Huatai Securities research report stated that the recent decline in gold prices is mainly affected by liquidity squeeze; investors tend to hold cash when facing risks, and assets such as gold will face selling pressure. On one hand, the intensification of Middle East geopolitical conflicts puts Gulf countries under cash flow pressure, and gold may face the pressure of "escaping from virtual to real" in the short term; on the other hand, market concerns about stagflation combined with weakening expectations of interest rate cuts have intensified the volatility of risk assets, leading to liquidity squeeze. The current macroeconomic situation is similar to the 1973-1975 oil crisis, when the gold price experienced two falls and two rises, during which the liquidity squeeze caused by risk avoidance and economic recession was the main reason for the decline in gold prices; stagflation and loose liquidity catalyzed two rounds of uptrends. The logic of reconfiguring gold assets in the medium and long term remains solid; it is crucial to grasp the investment pace in risk events.