Gold Bull Market Outlook: Fed Policy and AI Revolution Impact

On February 6, a report from China International Capital Corporation (CICC) suggests that the current gold bull market may be nearing its conclusion. According to Jin10, the report outlines two potential scenarios: the Federal Reserve ending its rate-cutting cycle and initiating balance sheet reduction, or significant advancements in the U.S. AI revolution boosting economic growth and reducing inflation. Despite no turning point in current Federal Reserve policies or the U.S. economy, the gold bull market is expected to persist for some time. In the coming months, rising U.S. growth and inflation may continue to dampen expectations for Federal Reserve rate cuts, causing market disturbances. Strategically, the report recommends maintaining an overweight position in gold and taking advantage of market corrections to buy at lower prices.