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

MeNews · 2026-04-04T04:36:18+00:00

CICC research reports indicate that the US-Iran conflict has driven up oil prices, and market expectations of Federal Reserve rate cuts have led to gold ETF sell-offs. The Middle East situation affects the oil and gold markets, and in the future, there may be opportunities for investment demand and price recovery upward.

MeNews

2026-04-04 04:36:18

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ME News message, April 4 (UTC+8). In a research report, CICC said that the conflict between the U.S. and Iran has driven a surge in oil prices. The risk of “inflation” comes first, as market expectations for the Fed’s interest-rate cut path have changed. This has created selling pressure for the gold ETFs that were added in larger quantities last year, while the liquidity shock has also spurred a near-term pullback through the futures and options market. The current geopolitical situation in the Middle East may now be entering a critical window. Oil prices face a choice between upside and downside, and the pricing focus in the gold market may shift to assessing how the supply shock affects “stagflation.” The already partially priced-in rate-hike expectations may still need adjustment. Looking ahead, CICC believes that regardless of an oil price pullback after geopolitical downgrading, a return of monetary policy to a more easing direction, or supply shocks that intensify recession pressure and trigger a clear display of gold’s safe-haven value, both gold investment demand and prices may have room for upward repair. (Source: PANews)

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