Nonferrous Metals ETF (159876) Hits Record High with 91% Rally! Gold Breaks $4,500, Analysts Predict Long-Term Bull Market

Today (December 23), the nonferrous metals sector showed strong performance, leading gains in the market. The largest ETF tracking the sector, Nonferrous Metals ETF (159876), surged over 2.3% intraday before closing up 0.74%, with trading volume reaching 68.87 million yuan—breaking its previous post-listing high.

Since its recent low on April 8, the ETF has rallied 91.08%, significantly outperforming major indices like the Shanghai Composite (26.59%) and the CSI 300 (28.73%).

Key constituents led the gains: Boway Alloy and Shandong Gold rose over 6%, while Baowu Magnesium, Guocheng Mining, Yunnan Chihong Zinc & Germanium, Shenzhen Chengxin Lithium, Nanshan Aluminum, and Sinomine Resource all climbed more than 4%. Notably, Xiamen Tungsten hit a record high with a nearly 4% gain.

The rally was fueled by gold prices surpassing the $4,500 milestone, setting a new all-time high. GF Securities noted that the Fed’s 2026 rate-cut trajectory, tied to U.S. economic data and policy shifts, could weaken real rates and the dollar, further boosting gold. With prices sustaining highs, gold producers may see earnings surge from 2026, potentially triggering a "Davis Double Play" for the sector.

Beyond gold, the nonferrous metals sector offers diversified exposure—from precious metals (hedges against inflation) to strategic metals like lithium (driven by EVs) and rare earths (critical for advanced manufacturing), as well as industrial metals (copper, aluminum) benefiting from economic recovery and infrastructure demand.

Huachuang Securities highlighted constrained supply growth for industrial metals, while demand is buoyed by global energy transition (copper, aluminum), high-end manufacturing (rare metals), and infrastructure spending. Low inventories and potential Fed easing could further lift prices, signaling long-term upside.

For investors, broad-based exposure via ETFs like Nonferrous Metals ETF (159876) offers a balanced approach to capitalize on sector-wide momentum while mitigating single-metal risks.

*As of December 22, the ETF’s AUM stood at 754 million yuan, the largest among three ETFs tracking the same index.

Risk Disclosure: Past performance does not guarantee future results. Investment decisions should be based on individual risk tolerance and professional advice.