Trump's Ultimatum Set to Expire, Global Assets Face Indiscriminate Selloff, Gold May Offer Buying Opportunities on Dips

Why does AI · Why do geopolitical risks trigger a global asset sell-off?

On March 23, tensions between the US and Iran intensified, with sharp exchanges of words. Additionally, U.S. President Trump’s 48-hour final warning is set to expire on Monday evening Eastern Time. Brent crude oil prices remain high, inflation expectations continue to suppress gold prices, and global assets are being sold off indiscriminately. Assets such as Asia-Pacific markets, gold, dividends, and government bonds all declined. As of 1:30 PM, COMEX gold futures are trading around $4,375, down 4.35%. Gold ETFs like Huaxia (518850) fell by 7.12%, Huaxia Gold Stock ETF (159562) dropped 6.14%, and Huaxia Nonferrous Metals ETF (516650) declined 3.42%.

According to The Paper, U.S. Treasury Secretary Janet Yellen, when asked on the 22nd about Iran’s situation and whether Trump plans to de-escalate, stated that the U.S. is destroying various Iranian facilities and that sometimes “you have to escalate first before you can de-escalate.” She also clearly indicated that “all options are under consideration,” including deploying U.S. troops to control Iran’s oil hub at Khark Island.

Guotai Junan Futures believes that gold remains the main line driven by geopolitical risks. Looking ahead, short-term emotions are rapidly releasing, with gold and silver retreating to key support levels. However, the macro landscape has not undergone substantial change. If the conflict continues, there is still a risk of further asset liquidation. Even after this decline, markets remain insufficiently priced for scenarios like stagflation and recession.

Daily Economic News