CITIC Securities: The US Dollar Index is expected to be supported within the year, but is also unlikely to continue rising sharply.

According to Golden Ten Data on June 26, a research report from CITIC Securities stated that the US Dollar Index has recently strengthened rapidly, resulting in a drop in gold prices below the $4,000 per ounce threshold. The market’s diminished concerns over inflation have not led to a depreciation in the dollar. We believe that while “re-dollarization” in the political sphere can partially explain the recent strength of the dollar, the more significant driving factor should be market expectations of tightening US dollar liquidity. We anticipate that the US Dollar Index will remain supported for the remainder of the year, but it will be difficult for it to sustain further rallies. The next US inflation data may serve as a catalyst for market participants to adjust their trading strategies.