1At present, the Federal Reserve's extremely loose policy has released a huge amount of US dollar liquidity, leading to a deteriorating outlook for the US economy and fiscal situation. The US dollar may enter a medium to long-term depreciation trend, which will provide a boost to commodity prices, including gold and silver.
2In the past few months, gold and US stocks have risen together, and the driving factors behind them are similar, namely the large amount of liquidity injected into the market and stimulus policies. Because the more money is printed, the greater the pressure the fiat bears, the greater the attractiveness of gold, and the same goes for the stock market to perform well.
3Although the current global economic and political environment is not optimistic, the market has not reflected this fundamental aspect at all. The enthusiastic risk appetite of investors is driving the prices of various risky assets, coupled withETFThe surge in demand, the intensification of gold supply shortage, and the increase in currency risk have contributed to the rise in gold prices.