Shenwan Hongyuan: Gold will return to a steady upward trend channel.

This recent major upheaval in precious metals was mainly influenced by two factors: first, on January 30, President Trump announced his nomination of Kevin Warsh as the next Federal Reserve chairman. Warsh's traditional hawkish stance led to a significant rebound in the US dollar index, easing market concerns about the independence of the Federal Reserve. Second, precious metals had a rapid increase in the short term, especially silver, due to dual support from its industrial and financial attributes, resulting in a huge rise. The gold-silver ratio significantly decreased, and silver volatility rose to a high level. Warsh's nomination triggered profit-taking, leading to leveraged funds fleeing in a stampede, further amplifying market volatility. From a long-term perspective, the supporting factors for gold's uptrend have not reversed, and after the market adjusts fully, gold is expected to return to a stable upward trend. In the short term, market volatility has intensified, and although silver has undergone a significant adjustment, the gold-silver ratio is still low. Silver prices are expected to remain under pressure, so it is advisable to wait and observe.