Geopolitical tensions support Gold and Silver to continue to rise [Agency Review]

On Wednesday, precious metals continued to rise, with the main force of Shanghai gold rising 0.58% to break through 400 yuan / g, while the main force of Shanghai silver rose 1.15%. As talks between Russia and Ukraine stalled, geopolitical concerns increased safe-haven demand for gold and silver, and US inflation continued to soar to support gold prices. However, Fed officials have been talking hawkishly, and the dollar has once again brushed a new two-year high, limiting market gains. At present, the situation between Russia and Ukraine is tense again. On the 12th local time, the heads of state of Russia and Belarus concluded nearly three hours of talks and held a joint press conference. Russian President Vladimir Putin said at a press conference that Ukraine has deviated from the consensus reached between Russia and Ukraine during the negotiations in Istanbul and returned to a "dead end". Mr Putin said he was told yesterday that Ukraine's negotiating position had changed, but he did not know the details. On Tuesday, the annual rate of non-quarterly CPI in the United States broke 8% in March, recording 8.5%, the highest since December 1981. After the quarterly adjustment in March, the monthly rate of CPI in the United States recorded 1.2%, the highest since October 2005. After the release of the CPI data, Fed swaps showed that traders had cut their expectations of raising interest rates in 2022. Predictions of whether inflation will peak may affect how aggressive the market is about Fed tightening expectations. According to financial blog Zero hedge, at least six Wall Street banks said CPI was the peak of this wave of inflation after the US quarterly adjustment in March. Fed officials are once again hawkish in the face of soaring inflation. On Tuesday, April 12, local time, Fed governor Brainard said the Fed would act "quickly" to raise interest rates. to bring soaring inflation back to the target of 2%. "We are achieving this goal by methodically tightening monetary policy, and we are going to raise interest rates and start shrinking the table," Brainard said in a live interview at a summit on Tuesday. The decision to shrink the table may be made as early as May and will be implemented in June at the earliest. " Huatai Futures believes that the CPI data released by the United States show that inflation rose by more than 8% year-on-year in March, the highest in more than 40 years, while crude oil prices rebounded sharply again. This largely offsets the previous negative impact on gold prices caused by US bond yields and the strengthening dollar, and proves once again that there is a mismatch between supply and demand caused by energy shortages. The level of inflation will not change immediately as a result of the tightening of monetary policy, and the current geopolitical uncertainty also disturbs the market from time to time, so precious metals still have the value of bargain-hunting allocation.