Core Viewpoint - The strategy of going long on the gold-oil ratio has been repeatedly mentioned since last year, and the recent surge in the gold-oil ratio confirms the accuracy of previous strategy recommendations. The strong performance of gold is driven by increasing uncertainties in the U.S. and weakening economic indicators, while oil faces downward pressure due to OPEC's production recovery and deteriorating macroeconomic sentiment [3][4][6]. Group 1: Gold-Oil Ratio Performance - The gold-oil ratio has reached a new high this year, validating the previous strategy of going long on this ratio [4]. - The recent strength in the gold-oil ratio is attributed to the accumulation of uncertainties, particularly influenced by frequent policy statements from Trump, leading to heightened economic uncertainty and signs of economic weakness in the U.S. [6][8]. - The S&P 500 volatility index has been hitting new highs, reflecting increased risk aversion and driving gold prices higher [6][8]. Group 2: Oil Market Dynamics - Following OPEC's announcement to restore production in April, oil prices faced significant downward pressure, nearing new lows since 2022, as sanctions on Iran did not lead to a noticeable reduction in supply [6][8]. - The weakening demand in the U.S. has contributed to a downward adjustment in global oil demand growth [9]. Group 3: Future Outlook - The gold-oil ratio is expected to continue rising due to potential geopolitical events, particularly as Trump may exert pressure on countries like Iran, which could introduce new geopolitical variables and risk premiums for gold [10]. - Despite recent temporary declines in inflation, the ongoing interest rate cut cycle suggests a possibility of renewed inflation speculation, which could benefit gold's anti-inflation properties [12]. - OPEC's production recovery is set to restart in April, with an estimated increase of about 150,000 barrels per day, potentially leading to structural oversupply starting in Q2 [13][14].