U.S. economy

Recently, after the upside-down of the three-month and 10-year yields of U.S. Treasury bonds, market worries were once ignited. Because such a situation in history often indicates recession risk in the U.S. economy, and triggers a rise in market risk aversion sentiment. As a result, market risk aversion assets begin to fluctuate significantly, and gold and yen assets will rise accordingly.

In the past 40 years, there have been three term spreads upside-down in the United States, and then the stock market has fallen sharply. Now, this indicator has reappeared, causing panic in global markets to soar, further strengthening the weakness of the dollar index, gold as a safe haven asset is naturally sought after.

In addition, the weakening of the strong momentum of the U.S. economy and the weakening of the U.S. dollar are also good for gold. The strong momentum of the U.S. economy is fading, or will weaken the strong margin of the U.S. dollar. On the one hand, it will push up the price of gold from the demand for hedging, on the other hand, it will benefit gold from valuation factors.