Galaxy Securities stated that the 1H26 Middle East conflict has pushed up oil prices and inflation expectations, and market expectations have shifted from the Federal Reserve's interest rate cut to a rate hike within the year. Coupled with liquidity liquidity realization, gold prices have surged and fallen. The market has included expectations of a 1H26 Federal Reserve rate hike in gold prices. If the 2H26 Middle East conflict eases and the Strait of Hormuz is not blocked, oil prices and inflation will decrease, and the Federal Reserve's marginal easing expectations will reappear, supporting a rebound in gold prices. The tense global order and the accelerated de dollarization of US debt risks have prompted the central bank, institutions and households to increase the allocation of gold. Galaxy Securities believes that this supports the medium - and long-term upward trend of gold and the valuation of China's A-share gold plate.