Galaxy Securities: The core logic of the long-term bullish gold market remains solid; central bank gold purchases will continue to increase

Galaxy Securities believes that “changing the Fed leadership” should not be automatically equated with a major turning point in market trends. What policies do to the fundamental aspects of the U.S. economy is the cornerstone of dollar pricing. A Fed led by Wosh may initiate a profound shift in the central bank’s role: from a “backstop” that deeply intervened and supported markets after the financial crisis to a more traditional “institutional anchor” focused on rules and discipline. The dollar is expected to strengthen in the short term, with a long-term “slow bear” pattern; U.S. Treasury yields will rise in the short term, pressuring prices, and if policies remain credible in the medium to long term, inflation expectations will anchor around 2%. Global stock markets will face short-term pressure, but U.S. stocks will break through and recover in the long run. The core logic of a medium- to long-term gold bull market remains solid, with central banks continuing to increase gold purchases. Any flaws in dollar credit will accelerate the construction of a multi-polar global reserve system.