Institutional perspective: It is recommended to maintain a bullish approach in the current strategy of precious metals

On April 8th, Jinshi Futures reported that the US non farm payroll data released last Friday exceeded expectations, but gold prices showed strong performance and hit a new historical high, indicating that the market is continuing to trade in anticipation of the Federal Reserve's interest rate cut, and the funding factor is obvious. The main trend of current market trading still lies in the expectations of the Federal Reserve's monetary policy. It is certain that the Federal Reserve will enter a substantial interest rate reduction cycle this year. In the medium term, gold and silver prices still have upward potential. In the early stage, gold, as the most financially strong commodity, responded to the downward expectations of interest rates first. The gold to silver ratio is currently at a relatively high level, and in the early stage of the interest rate reduction cycle, gold is prone to rise but difficult to fall. The recovery of the gold to silver ratio will be more presented by the rise of silver prices. Recently, the US economic data has been stronger than Europe, and the monetary policy stance of the European Central Bank is weaker than that of the Federal Reserve. There is a risk of further upward movement in the US dollar index, which will create a bearish risk on the currently high international gold price. It is recommended to maintain a bullish mentality in the current strategy of precious metals, and buy mainly on dips after the subsequent price correction, rather than short selling.