CICC: Gold investment demand and prices may both have room for upward correction

MetaMuskRat · 2026-04-04T02:03:48+00:00

People's Financial News, April 4th — CICC research reports believe that the Iran-U.S. conflict has led to a sharp rise in oil prices, with inflation risks taking the lead. Market expectations of a change in the Federal Reserve's rate cut path have brought selling pressure on the gold ETFs that were increased last year. At the same time, liquidity shocks have also fueled short-term corrections through the futures and options markets. Currently, the geopolitical situation in the Middle East may be entering a critical window, with oil prices facing upward or downward choices. The gold market's pricing focus may shift toward assessing the impact of supply shocks on "stagnation," and the previously priced-in rate hike expectations may need to be revised. Looking ahead, CICC believes that whether it is a correction in oil prices after geopolitical de-escalation, a return to easing monetary policy, or increased supply shocks intensifying recession pressures and triggering the safe-haven value of gold, there is potential for upward correction in gold investment demand and prices.

MetaMuskRat

2026-04-04 02:03:48

People’s Finance News, April 4—A research note from CICC states that the U.S.-Iran conflict has led to a sharp jump in oil prices. The risk of “inflation” takes precedence, and market expectations for the Federal Reserve’s rate-cut path have shifted. This brings selling pressure for the gold ETFs that were increased substantially in the previous year, while liquidity shocks also add fuel to short-term pullbacks through the futures and options market. At present, the geopolitical situation in the Middle East may be moving into a critical window. Oil prices face a choice between moving up or down, and the pricing focus in the gold market may shift toward assessing how supply shocks affect “stagflation.” The already preliminarily priced-in rate-hike expectations may need to be adjusted. Looking ahead, CICC believes that whether it is an oil-price pullback after a downgrade in geopolitics, or monetary policy returning to a more accommodative direction, or whether intensified supply shocks increase recession pressures and bring out the value of gold’s safe-haven appeal, both gold investment demand and prices may have room for upward correction and recovery.

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