Shenwan Hongyuan Futures: Precious metals have rebounded, and gold is expected to continue its steady upward trend.

Precious metals have rebounded. Previously, precious metals experienced significant volatility mainly due to two factors: the nomination of a new Federal Reserve Chair and a capital sell-off. On January 30, Trump announced the nomination of Kevin Wirth as the next Fed Chair. Wirth’s traditional hawkish stance and his stance on balance sheet reduction led to a cooling of rate cut expectations. At the same time, concerns about the Fed’s independence eased, causing the US dollar index to rise sharply. Since January, precious metals have surged rapidly, with volatility remaining high. Wirth’s nomination acted as a trigger, leading to a large-scale profit-taking. From a long-term perspective, the supporting factors for gold’s upward movement have not reversed. Central banks continue to increase gold holdings. After the market fully adjusts and new bullish factors accumulate, gold is expected to return to a steady upward trend. Due to higher volatility in silver compared to gold, and the current gold-silver ratio still being relatively low, investors are advised to stay on the sidelines for now. (Shenwan Hongyuan Futures)