Huatai Futures: Gold price fluctuations slow down, market trading on increased expectations of U.S. economic stagflation

Gold price volatility within the week slowed down, with a relatively weak trend at the beginning of the week; the main reason may be market concerns about inflation amid soaring energy prices and the liquidity tightening caused by significant fluctuations in the equity markets. However, due to the surprising non-farm payroll data, the market may temporarily lean towards trading on U.S. stagflation, which is favorable for gold prices. Silver has a similar logic to gold, but its inherent volatility is relatively higher. Therefore, while it is still possible to buy on dips for hedging, more attention should be paid to position control and strict stop-loss execution. (Huatai Futures)

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