According to a ChainCatcher report citing Jin10, China Gold (CICC) forecasts that U.S. inflation will experience compensatory increases in the CPI data for December 2025, January 2026, and April 2026. If U.S. inflation remains stronger than expected in the near term, it could lead the Federal Reserve to slow its pace of interest rate cuts, resulting in tighter global liquidity and increased uncertainty for major global and Chinese asset classes. CICC recommends increasing exposure to commodities to hedge against this risk, as well as selectively increasing allocations to stocks, gold, and U.S. Treasury bonds during market pullbacks.
CICC Recommends Adding Stocks and Gold to Hedge Inflation Risk
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Summary
CICC advises increasing exposure to stocks and gold to enhance the risk-to-reward ratio amid concerns about inflation. The firm forecasts that U.S. inflation could rise in late 2025 and early 2026, potentially slowing the pace of Federal Reserve rate cuts. Tighter liquidity conditions may test support and resistance levels in global assets. CICC recommends entering positions in commodities and U.S. Treasuries at lower prices to hedge against inflation risk.
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