Group 1: Report Information - Report Date: January 26, 2026 [1] - Research Team: Macro Financial Team [2] - Researchers: He Zhuoqiao (Macro Precious Metals), Huang Wenxin (Treasury Bonds and Container Shipping), Nie Jiayi (Stock Index) [2] Group 2: Investment Rating - Not provided Group 3: Core Viewpoints - In 2026, precious metals, especially industrial precious metals, will continue to be strong under the influence of factors such as the restructuring of the international political and economic landscape, the Fed's loose monetary policy, the improvement of the global economic growth outlook, and the substitution demand of silver and platinum for gold jewelry. Investors are advised to take a long - biased approach but control the position size, and short - hedgers should appropriately reduce the hedging ratio [4][6] - The geopolitical risk may significantly increase in 2026, and the restructuring of the global political and economic landscape and the loose monetary policy of global central banks will continue to boost the reserve diversification demand, strategic value of rare precious metals, and liquidity premium of the precious metals sector. The silver and platinum trends will be stronger than that of gold, but the price volatility will also be significantly amplified [6] Group 4: Content Summary by Directory 1. Precious Metals Market Conditions and Outlook Short - term Market - Although the Greenland Island incident has cooled down, the media reported that the US is planning to take action against Cuba and Iran. The weakening of the US dollar index boosts the pricing currency factor of precious metals. Goldman Sachs has raised the 2026 gold target price to $5,400 per ounce. After a short - term decline, the precious metals sector has collectively soared again, with London gold approaching the $5,000 per ounce mark [4] - The adjustment risk accumulated inside precious metals was fully released in the callback at the end of December 2025 [4] Medium - term Market - Trump 2.0 government may focus on consolidating the geopolitical strategic space in the Western Hemisphere in 2026, which means that geopolitical risks may significantly increase [6] - The silver and platinum trends will be stronger than that of gold due to the improvement of global economic growth momentum and the substitution demand of silver and platinum for gold jewelry. However, the large influx of investment funds also means that the price volatility of precious metals will be significantly amplified [6] - The industrial demand for silver is significantly boosted in the global green energy transition due to its excellent electrical conductivity. The EU's cancellation of the 2035 fuel - vehicle ban under economic pressure means an improvement in the expected industrial demand for platinum and palladium. The significant and continuous rise in the gold price boosts the physical demand for silver, platinum, and palladium through jewelry substitution demand [6] 2. Precious Metals Market - Related Charts - The report provides multiple charts, including Shanghai gold and silver futures indices, London gold and silver spot prices, the basis of Shanghai futures indices against Shanghai Gold TD, gold and silver ETF holdings, the gold - silver ratio, and the correlation between London gold and other assets [8][10][12] 3. Main Macroeconomic Events/Data - Trump said he had reached an agreement with NATO to ensure full and permanent access to Greenland, but details are unclear. Denmark insists on its sovereignty over Greenland, and the EU's foreign policy chief said US - EU relations have been "severely damaged" [18] - Nordic large - scale investment institutions are increasingly vigilant about the risks of holding US assets due to geopolitical tensions, indicating an expanding trend of capital transfer from the world's largest financial market [18] - US consumer spending increased steadily in November and October, which may keep the economy growing strongly for the third consecutive quarter, but there is no sign of a strong labor market [18]

Report Summary 1. Reported Industry Investment Rating - Not provided in the report 2. Core Viewpoints of the Report - In 2026, precious metals, especially industrial precious metals, will continue to perform strongly under the influence of international political and economic restructuring, the Fed's loose monetary policy, improved global economic growth prospects, and the substitution demand of silver and platinum for gold jewelry. Investors are advised to maintain a bullish trading approach while controlling position sizes. Short - hedgers should appropriately reduce the hedging ratio. [4] - The restructuring of the global political and economic landscape and the loose monetary policies of global central banks will continue to boost the demand for reserve diversification, strategic value, and liquidity premium of the precious metals sector. In 2026, the precious metals sector will continue the medium - term upward trend since 2024. Silver and platinum will outperform gold, but price volatility will also increase significantly. [5] 3. Summary by Relevant Catalogs 3.1 Precious Metals Market Conditions and Outlook Intraday Market Conditions - Due to the US raid on Venezuela over the weekend and the capture of the Venezuelan president, which triggered significant geopolitical risks, the precious metals sector generally rose during the Asian session on Monday, with London gold returning above $4,400 per ounce. The correction at the end of December 2025 has fully released the adjustment risks accumulated within the precious metals. [4] - Domestic precious metals showed varying degrees of increase. The Shanghai Gold Index rose 1.78%, the Shanghai Silver Index rose 6.81%, the Guangzhou Platinum Index rose 10.66%, and the Guangzhou Palladium Index rose 6.38%. [5] Medium - term Market Conditions - Trump's 2.0 government may focus on consolidating the geopolitical strategic space in the Western Hemisphere in 2026, which may lead to a significant increase in geopolitical risks. [5] - The improvement of global economic growth momentum and the substitution demand of silver and platinum for gold jewelry will make the performance of silver and platinum stronger than that of gold. The industrial demand for silver is boosted by the global green energy transition, and the industrial demand for platinum and palladium is expected to improve due to the EU's cancellation of the 2035 fuel - vehicle ban. [5] - Investors are advised to maintain a bullish trading approach, strictly control position sizes. Conservative traders can consider cross - variety arbitrage strategies such as going long on silver and platinum and short on gold and palladium. Long - hedgers should hedge in batches as early as possible, and short - hedgers should appropriately reduce the hedging ratio. [5] 3.2 Main Macroeconomic Events/Data - The US President Trump ordered the arrest of Venezuelan President Maduro and claimed that the US would take over Venezuela, but the US military has not gained control of Venezuela, and the Maduro government is still in power and unwilling to cooperate with Washington. [16] - Venezuela's state - owned oil company PDVSA has started to cut crude oil production due to the US oil embargo, and Chevron's oil shipments have also stopped since Thursday. [16] - India is asking refiners to report their weekly purchases of Russian and US crude oil, and it is expected that Russia's crude oil imports will drop below 1 million barrels per day. [16]