Everbright Futures: Non-farm payrolls outperform expectations, putting pressure on gold prices

On the geopolitical front, the situation in the Middle East remains tense, with the Strait of Hormuz still largely closed. Market anxiety was triggered as Trump’s ultimatum neared, and oil prices have stayed elevated. Concerns about inflation under high oil prices and worries about liquidity amid central bank tightening are the ultimate reflection of this “geopolitical trade,” and it is expected to remain for some time. From a strategy perspective, the pattern of downward pressure on gold prices in the short term is unlikely to change. Lower expectations for the first half of the year for gold and adopt a cautious approach of “defense first, buy on dips for positioning.” (Everbright Futures)