Guojin Securities: In the long term, gold is expected to usher in a new bull market

Why does Guojin Securities emphasize the overlooked stagnation risk in economic stagflation?

[Guojin Securities: In the long term, gold is expected to enter a new bull market] According to Caixin, on March 26, Guojin Securities pointed out that historical experience shows that gold usually performs well in stagflation environments, but this round of the market has focused on pricing inflation factors while neglecting the pressure of economic “stagnation.” The U.S. economy has shown signs of weakening growth, and high oil prices may further accelerate the arrival of a recession. If economic stagnation resonates with a downturn in the capital market, the liquidity expectation difference is expected to become a trigger for gold’s rebound. In the long term, it has become a market consensus that the comprehensive national power of the United States is transitioning from prosperity to decline, and gold is expected to enter a new bull market.