On April 6th, China Galaxy Securities stated that the end of the Fed’s current round of interest rate hikes is approaching, and the market’s expectations for interest rate cuts are heating up, which may start a new round of gold price rises.
The starting point of the last gold bull market (2018-2020) occurred at the end of the 2015-2018 rate hike cycle and before the 2019-2020 rate cut cycle started.
From the perspective of the Fed’s five rounds of interest rate hike cycles since 1990, from the end of the current round of interest rate hikes to the start of the next round of interest rate cut cycles, most of the time the yield of gold has improved significantly during this process.
Gold has entered a bull market, and rising gold prices will bring significant excess returns to the gold sector. At present, the valuation of the A-share gold sector is still in a relatively safe position.