CICC Wealth today released a fundamental analysis of precious metals, noting that almost all major global institutions are overwhelmingly bullish on gold.

The reasons are also quite consistent, namely the normalization of geopolitical conflict risks, the ongoing global de-dollarization of assets, central bank gold purchases, geopolitical risks, and the shift of the gold pricing anchor from a real interest rate-dominated framework to a credit risk hedging framework. From an allocation perspective, a simple estimate suggests that by 2026-2028, the proportion of investable gold may exceed the 2011 peak (3.6%), and gold prices are expected to rise to $5,100-6,000 per ounce. As for silver, we believe that after the gold-silver ratio is corrected, the range will be between 55-80. If silver is overbought, it will still face policy suppression and short squeeze risks, so silver will mainly follow the trend of gold.