Can the price of gold rise back up?

At present, the market is more concerned with whether the price of gold can rise again. Huaxia Fund analysis shows that gold, which is seen as a safe haven asset, has been on a continuous decline since March because gold hedging is reflected in the collapse of US dollar credit and uncontrollable inflation, rather than the risk of liquidity depletion and deflation. Currently, the market is worried about worsening marginal liquidity, while the impact of geopolitical conflicts has clearly weakened. The institution believes that the short-term monetary shocks on gold are more temporary, and the long-term logic such as geopolitical conflicts and central bank gold purchases has not been shaken or reversed. The medium to long-term upward momentum of gold continues, but short-term risks still need to be released. Yu Kai Securities chief economist Luo Zhiheng pointed out that the current sharp decline in gold is not a signal of the end of the bull market, but a deep correction in the upward trend. In the long term, the normalization of global geopolitical risks, strong demand for gold purchases by non-US central banks, and the risk that the global economy may transition from "inflation" to "stagnation" will all provide solid support for the price of gold.