The leveraged gold exchange-traded fund CSOP 2x Leveraged Gold ETF (07299) surged more than 5%. As of writing, it is up 5.48%, trading at HK$23.86 with a turnover of HK$20.26 million.
On the news front, market reports indicate that on June 14, local time, former U.S. President Donald Trump stated that an agreement with Iran is now complete, the Strait of Hormuz is fully open, and he authorized the immediate lifting of the U.S. Navy's blockade. Influenced by this development, spot gold prices returned to the $4,300 per ounce level during trading on June 15.
Analyst Perspective on Gold's Outlook
China Post Securities analysts believe that gold's value as a portfolio allocation will become prominent again once the market's panic-driven liquidity concerns subside. Currently, gold prices are under pressure during the process of adjusting expectations for U.S. financial liquidity. Once these expectations are realized, gold prices are anticipated to enter a recovery phase. The core supportive factors for gold—ongoing purchases by global central banks, recurring geopolitical risks, and persistent inflation—remain unchanged, making it a rational strategy to allocate to gold during price dips.
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