Securities firms: Global geopolitical uncertainties are increasing, and gold as the ultimate safe-haven asset may see increased allocation.

Guosheng Securities' report believes that the next U.S. incident may signal an escalation of the Iran-Israel conflict. In recent years, geopolitical conflicts in regions such as Russia and Ukraine, the Middle East, and India and Pakistan have been ongoing. The increasing uncertainty in global geopolitical situations has led to a higher demand for gold as the ultimate safe-haven asset. CITIC Securities also believes that safe-haven sentiment often catalyzes gold prices before a war breaks out, and there are two patterns in price trends after the war starts. First, in conflicts where the market has expectations before the war, gold prices often rise on the first day of the war and then fall back. Second, in conflicts where there are no market expectations before the war, gold prices typically reach a short-term peak around ten days after the war breaks out, and then decline after the situation becomes clear. In the long run, as the United States shifts towards strategic withdrawal and international instability increases, geopolitical factors will continue to catalyze the gold market in the long term.