Zhongjin: The gold bull market is not over yet, and the turnaround may not be far away.

According to a research report from Zhongjin Securities, it is highly probable that US inflation will peak this summer, the labor market is cooling down, the Powell reform leaves room for future Fed policy easing, and the Fed policy will not completely shift towards tightening. With geopolitical and inflation pressures gradually easing in the second half of the year, the probability of the Fed raising interest rates is very low. Instead, the timing and pace of rate cuts may exceed market expectations, driving the return of USD liquidity easing and providing new support for assets such as gold and stocks. Therefore, Zhongjin believes that the bull market for gold is not over. In June, global inflation peaked, and many central banks are raising interest rates, making it a period of maximum global liquidity pressure. The accelerated adjustment of gold is not surprising. In July and August, as US inflation and growth data fall, or Powell provides new policy guidance, there is a possibility that the Fed tightening narrative will be quickly reversed, and the turning point of the gold market is approaching. Meanwhile, Zhongjin also points out that gold is a potential hedge asset against AI bubbles, which can help diversify risks. In conclusion, Zhongjin remains optimistic about the future of gold and recommends maintaining positions, buying on dips, and patiently waiting for a turnaround.