The E Fund Gold Mining ETF (02824) closed more than 7% higher today, extending its rally to nearly 45% since the start of July. Among its constituent stocks, Zijin Gold International (02259) jumped 11% in the session, while Wanguo Gold Group (03939), Zhaojin Mining (01818), and Zijin Mining (02899) all advanced by more than 5%.
The surge comes as the U.S. Treasury moved to ease pressure in the long-dated bond market by announcing an expansion of its buyback program for long-term government debt. This triggered a sharp rally in spot gold, which climbed more than 4% in a single day, briefly breaking through the $4,500 per ounce level to reach a three-month high.
Adding to the bullish backdrop, central banks worldwide continue to accumulate gold reserves. The People's Bank of China has now increased its gold holdings for 21 consecutive months, with the pace of accumulation accelerating each month. Meanwhile, the Bank of Korea has resumed gold purchases for the first time in 13 years.
The E Fund Gold Mining ETF is designed to capture opportunities in the global gold mining sector, tracking the Solactive Global Gold Mining Select Index. Its holdings span industry leaders across core gold-producing regions including China, the United States, Canada, and Australia, featuring names such as Zijin Mining, Zhaojin Mining, Chifeng Gold, Newmont (NEM.US), and Barrick Gold (ABX.US).
Compared with physical gold, gold mining companies benefit from rigid cost advantages and possess 2-3 times natural operating leverage. This gives them outsized upside during gold price recovery cycles, making the ETF a compelling vehicle for capturing precious metals rebounds and seeking excess returns.
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