CITIC Securities: Gold prices may have a liquidity-driven rebound opportunity

Golden Ten Data reported on April 14 that a research report from CITIC Securities indicates market expectations for liquidity tightening are likely to weaken. CITIC Securities still anticipates the Federal Reserve will cut interest rates by 25bps in the second half of this year, a more dovish stance than market consensus. As the conflict in Iran enters a de-escalation stage, US stock valuations may still have room for recovery; however, the future outlook remains uncertain, and further observation is required regarding the extent and intensity of disruptions to global supply chains and demand due to shipping obstacles in the Strait of Hormuz. Currently, the resilience of the US economic fundamentals may support real yields on US Treasuries, and long-term US Treasury yields will find it difficult to continue significant declines. Gold prices may see a liquidity-driven rebound opportunity, while the US dollar could remain weak and fluctuate as market sentiment improves.