Citic Securities: Gold prices may have rebound opportunities driven by liquidity

The research report from CITIC Securities points out that the pricing of the market for liquidity tightening is expected to weaken. CITIC Securities still predicts that the Federal Reserve will cut interest rates by 25 basis points in the second half of this year, which is more dovish than the market consensus. With the de-escalation of tensions in Iran, there may still be room for valuation repair in the US stock market. However, the outlook is still uncertain, and it is necessary to observe the extent and intensity of disruption to global supply chains and demand caused by the blockade of the Strait of Hormuz. The resilience of the fundamentals of the US economy may support real interest rates on US bonds, making it difficult for long-term US bond yields to continue to decline significantly. There may be opportunities for a rebound in gold prices being driven by liquidity, while the US dollar may weaken and fluctuate with improved market sentiment.