CICC Wealth Futures: The elevation of U.S. Treasury yield premiums and other factors have created a favorable environment for gold.

Iran and Oman have signed an agreement to prohibit American and Israeli ships from passing through the Strait of Hormuz. However, Trump still claims that the war between the U.S. and Iran is about to end. Oil prices have rebounded, but inflation expectations have eased. Additionally, the rise in the term premium of U.S. Treasuries and the weakening dollar have indeed created an environment favorable for gold. On a micro level, COMEX non-commercial net long positions have returned to levels seen in 2024, while volatility has fallen to low levels. The rebound in gold prices confirms our previous opportunity alert. Currently, we maintain a slightly bullish outlook amid fluctuations.