Recently, Xu Zhiyan, assistant general manager of Huaxin Fund and senior director of the index investment department, said that there were three reasons behind the repeated record highs in gold prices. These reasons are the Fed's interest rate cut policy, the close relationship between gold and debt and currency, and the risk-aversion and inflation-resistant characteristics of gold. Despite the high short-term gains, Xu believes that gold has entered a good allocation range and cycle. Xu stated that the three reasons behind the repeated record highs in gold prices are the Fed's interest rate cut policy, the fact that major central banks, represented by the Fed, will continue to cut interest rates in the next three years, and the shift of some of the global central banks' holdings from the US dollar to gold, which is still increasing demand for gold. Gold has the characteristics of risk aversion and inflation resistance, and performs well in the medium to long term. Investors participating in the gold market are currently considering long-term factors rather than short-term factors. Therefore, Xu's view on gold allocation remains consistent with the beginning of the year. Despite the high short-term gains, Xu believes that gold has entered a good allocation range and cycle. Xu also emphasized that although gold does not generate interest, its intrinsic value comes from being a hedge against currency devaluation. In the past, gold has provided good overall returns. Xu believes that gold serves as a hedge against currency devaluation and as a type of hard currency. Xu believes that stocks are weakly or negatively correlated with bonds and gold, which is a correlation rather than a causal relationship. Gold and stocks have both seen significant increases in the long term, despite short-term negative correlations. Xu suggests that investors who prefer gold should consider investing in gold ETFs and carefully study gold stock ETFs. Overall, Xu believes that stocks can amplify the movement of gold prices, particularly during major gold bull markets. He advises investors interested in gold to start by investing in gold ETFs before considering gold stock ETFs.