Spot gold temporarily rebounded to $4,600 per ounce; CICC: The expectation of rate cuts by European and American central banks has completely reversed to expectations of rate hikes | Financial Morning News Brief

Everyday Editor | Zhang Yiming

| March 26, 2026, Thursday |

NO.1 Central Bank Conducts 78.5 Billion Yuan 7-Day Reverse Repo Operation

On March 25, the central bank conducted a 78.5 billion yuan 7-day reverse repo operation, with an operation rate of 1.40%.

Commentary: Mingming, chief economist at CITIC Securities, stated that from the perspective of liquidity, the liquidity market has been overall loose since this year’s Spring Festival, with the supply and demand for liquidity remaining generally balanced. Since March, several long-term liquidity tools have mainly focused on net absorption. In addition, recent geopolitical conflicts have raised the risk of imported inflation in China, and monetary policy may reasonably arrange aggregate operations in conjunction with domestic and external balance, making total operations more stable.

NO.2 Spot Gold Once Again Surges Back to 4,600 USD/Ounce

On March 25, spot gold continued to rise, breaking through the significant thresholds of 4,500 USD/Ounce and 4,600 USD/Ounce during trading, increasing nearly 3%.

Commentary: Tian Lihui, a finance professor at Nankai University, indicated that the current fluctuations in the precious metals market have exceeded the normal correction range, entering a high-intensity and high-uncertainty abnormal phase. Ordinary investors are more suitable for long-term allocation through accumulation of gold, gold ETFs, and other non-leveraged methods.

NO.3 China Life: Plans to Invest 2.8 Billion Yuan to Establish Sci-Tech Innovation Relay Fund

On March 25, China Life announced that the company plans to invest 2.8 billion yuan as a limited partner to jointly establish the Fujian Province Xinrui Sci-Tech Innovation Relay Equity Investment Fund Partnership (Limited Partnership) with the Fujian government investment and Fuzhou Jintou, among others. The total scale of the fund is 4.0154 billion yuan. This fund focuses on the secondary market for private equity, with a key investment in strategic emerging industries such as new generation information technology, biomedicine, and high-end manufacturing. This transaction constitutes a related party transaction, has been approved by the board of directors, and related directors have abstained from voting, and there is no need to submit it for shareholder meeting review.

Commentary: China Life’s participation in establishing the Sci-Tech Innovation Relay Fund demonstrates its emphasis and support for strategic emerging industries. Such investments not only help promote innovation in fields like information technology and biomedicine but also serve as a strategic extension of insurance capital’s diversified investments. The establishment of this fund provides more diversified investment opportunities in the market, encouraging capital to flow into areas with high growth potential and improving the efficiency of fund utilization.

NO.4 Bank of Communications Issues Precious Metals Business Risk Reminder

On March 25, the Bank of Communications issued a notice regarding the risks associated with precious metals business. The notice mentioned that recent domestic and international precious metals prices have become more volatile, increasing investment trading risks. It is advised to enhance risk awareness, manage investment risks properly, arrange investment trading rationally, and reasonably control the scale of precious metals holdings to prevent risks from price fluctuations.

Commentary: Recently, precious metal prices have continued to fluctuate, and the “roller coaster” market has significantly increased the investment risks of precious metals like gold. In response, multiple banks have again issued market risk reminder notices, “calling out” to investors to remain calm and rational when investing in gold.

NO.5 CICC: Escalation of the Iranian Situation, Expectations of Rate Cuts by US and European Central Banks Fully Reversed to Rate Hike Expectations

CICC’s research report indicated that the situation in Iran has further escalated recently, leading to a rise in oil prices, while concerns over stagflation in the US and Europe continue to intensify. Last week was the “Super Central Bank Week,” with the Federal Reserve, European Central Bank, and Bank of England releasing hawkish signals, prompting investors to significantly adjust their expectations for monetary policy paths. The futures market implies that the timing for a Federal Reserve rate cut has been pushed back to the second half of 2027, with certain expectations for a rate hike even in 2026, and the expectations for rate cuts by the European Central Bank and Bank of England have also reversed to expectations for rate hikes.

Commentary: As the situation in Iran escalates, the expectations for rate cuts by US and European central banks have fully reversed to expectations for rate hikes, revealing potential significant changes in the global economic landscape. The resulting increase in oil prices and macroeconomic uncertainty may elevate global inflationary pressures, raising market concerns.

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