Daily Investment Strategy

2024.11.21 10:00

Recommended Stock:SPDR Gold TR (2840)

The geopolitical risks are intensifying in 2025, and the potential deterioration of U.S. budget deficit pressures highlights the value of investing in gold. Russian President Putin recently warned the US that the threshold for using nuclear weapons has been lowered, a new stance after President Joe Biden allowed Ukraine to use American weapons to strike inside Russia. Gold prices rose as investors turned to safe-haven assets. Meanwhile, among the top 10 countries with the largest gold reserves, emerging markets have seen the most significant percentage increases in their reserves over the past 20 years, specifically Turkey, Russia, China, and India. In terms of actual reserve volume growth, Russia and China lead the way. As the trend of global de-dollarization intensifies, central banks may hold more gold as reserves, which is expected to support long-term demand for gold. 

 

 

Fed speakers in focus

Gold prices edged higher on Wednesday. Investors are seeking safety amid rising geopolitical unrest due to escalating tensions between Russia and Ukraine. Meanwhile, a series of speeches from Federal Reserve officials continues this week, with investors eager to learn whether Fed members will continue to be cautious about further rate cuts in the future. CME Fedwatch showed investors continue to bet that interest rates will fall in the short term, with traders pricing in a more than 50% chance of a 25 basis point rate cut by the Fed in December.

Hong Kong Stock Connect had a net inflow of HK5.57bn on Wednesday of which Meituan (3690) had the largest net inflow, reaching HK$0.48bn; followed by Innovent bio (1801). CMB (3968) recorded the largest net outflow at 0.37bn, followed by CNOOC (883).

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