Report Investment Ratings - Gold: ★☆★, indicating a bullish bias but with limited operability on the trading floor [1] - Silver: ☆☆☆, suggesting a short - term equilibrium state with poor operability and a recommendation to wait and see [1] Core Viewpoints - Today, precious metals showed a strong and volatile trend. Last week's lower - than - expected US inflation led traders to bet on a Fed rate cut in June. A Fed governor stated different rate - cut scenarios based on tariff levels, and Trump's erratic tariff policies highlighted the value of gold under a credit crisis [1] - Attention should be paid to the battle of the US dollar at the key level of 100 after hitting a three - year low, and caution should be exercised after the rapid rise of gold prices [1] Other Key Points - Trump is considering measures to help automakers adjust their supply chains from Mexico and recently assisted Apple CEO Cook. The US Department of Commerce launched a 232 investigation on semiconductors and pharmaceuticals and will exit the tomato tariff suspension agreement with Mexico reached in 2019 [1] - US Treasury Secretary Yellen said there is no evidence that sovereign investors are selling US assets, has tools to deal with bond - market fluctuations but is far from using them, and will interview candidates for the Fed chair's successor in the fall [2] - Israeli officials said there are still differences among parties on reaching a Gaza cease - fire agreement [2]

Group 1 - The core viewpoint is that the asset attributes of US Treasuries are being challenged, leading to a renewed credit crisis in the US [2][3][4] - Recent market conditions have resulted in a rare simultaneous decline in stocks, bonds, and the dollar, indicating a trust crisis in dollar assets among global investors [2][3] - The increase in US Treasury supply and a significant change in the holder structure, with a decrease in long-term investors, has raised concerns about liquidity [3] Group 2 - The surge in US Treasury yields and the decline in the dollar index have prompted investors to seek alternative safe-haven assets, resulting in a rise in gold prices and appreciation of currencies like the euro, yen, and yuan [4] - The ongoing trade war initiated by the Trump administration is seen as ineffective in revitalizing US manufacturing, which may exacerbate the credit crisis [4][5] - The collapse of the US Treasury market could impact the government's financing ability and create shocks in global financial markets, forcing the US to make concessions [5] Group 3 - Despite global market volatility, China's stock market remains relatively stable, indicating a reallocation of funds towards Chinese assets as a new choice for investors [6] - The Chinese economy is positioned favorably, with multiple policies aimed at boosting consumption and stabilizing growth, which may enhance confidence in Chinese assets [6][7] - There is an expectation that more global funds will reduce their allocation to dollar assets and increase their weighting in Chinese assets, leading to a systematic increase in the valuation of Chinese assets [7]