Editor’s Note
This article presents CITIC Securities’ analysis of recent volatility in precious and non-ferrous metal markets, attributing price movements to shifting expectations around U.S. monetary policy and geopolitical factors. Investors should note that speculative activity may exacerbate these trends.
On February 10, CITIC Securities stated in a research report that recent gold prices have experienced significant volatility. From a fundamental perspective, this is due to changes in market expectations regarding the Federal Reserve’s independence and the situation in Iran, which drove gold prices to rise rapidly initially and then fluctuate sharply downward. Speculative funds in the market have also amplified this trend.
Looking at the short-term market, the market may have overestimated the hawkish stance of the new Federal Reserve Chairman, Kevin Warsh. However, uncertainty surrounding the Iran situation remains high, and gold market volatility may only subside after the situation becomes clearer.
For the full year of 2026, CITIC Securities maintains an optimistic outlook on the prices of precious metals and non-ferrous metals.
