Huatai Securities: The long-term asset reallocation logic for gold remains solid; focus on recovery opportunities after recent gold price declines stabilize.

Ask AI · What lessons can the historical oil crises offer for today’s gold price fluctuations?

[Haitong Securities: The logic for reallocating gold as a long-term asset remains solid; watch for opportunities to repair after recent gold price declines stabilize] Caixin News March 31, reports that a research report from Haitong Securities said that the recent drop in gold prices was mainly driven by a liquidity squeeze; when investors face risks, they tend to hold cash, and assets such as gold are likely to be sold off. On one hand, geopolitical tensions in the Middle East are intensifying, and Gulf countries face pressure on cash flow; in the short term, gold may face pressure to move from “paper gains” to “real value.” On the other hand, market concerns about stagflation combined with weaker expectations for rate cuts have increased volatility in risk assets, triggering a liquidity squeeze. In the current similar macro environment, one may refer to the 1973-1975 oil crisis; at that time, gold prices went through a two-decline, two-rise process. During that period, the liquidity squeeze formed by avoiding risk and an economic downturn was the main cause of the gold price decline; stagflation and liquidity easing then catalyzed two rounds of rising market conditions. The logic for reallocating gold as a long-term asset remains firm; in risk events, getting the investment timing right is crucial.