Lu Liping: Gold's long-term safe-haven function has not failed, but has experienced short-term fluctuations due to various factors.

Golden Ten Data reported on April 20 that Lu Liping, Professor and PhD supervisor at the School of Finance of Renmin University of China, recently stated that the long-term hedging function of gold has not been lost. However, in the short term, there is some volatility. For example, after the conflict between the United States and Iran, oil prices were pushed higher, which in turn led to a rise in inflation expectations. Rising inflation expectations mean that the Federal Reserve may not cut interest rates, or might even raise them, and this process increases the holding cost of gold. In the long run, however, the demand for gold as a safe haven remains very strong.