The E Fund Gold Mining ETF (02824) has tumbled more than 5%. At the time of writing, it is down 5.02%, trading at HK$8.615 with a turnover of HK$2.2883 million.
The decline comes amid market focus on Federal Reserve Chair Wash's upcoming monetary policy testimony before Congress, scheduled for 10 a.m. Eastern Time on July 14.
Notably, Goldman Sachs has significantly lowered its gold price target for the end of 2026 to $4,900 per troy ounce, down from a previous forecast of $5,400. This revision is attributed to a dual impact: the expectation that the Fed will not implement any interest rate cuts in 2026 and the perceived hawkish stance of the new Fed Chair, Wash. Goldman has characterized its near-term strategy as "tactically cautious" and warned that if rate hikes materialize, gold could potentially fall further to $4,440.
In its commodities research report, Goldman cited two primary reasons for the downgrade. First, its economists recently pushed back the Fed's final two rate cuts to 2027, indicating no cuts in 2026, which significantly dampens demand expectations for interest-rate-sensitive gold ETFs. Second, Chair Wash's first FOMC meeting sent a "more hawkish-than-expected" signal, which has substantially alleviated market concerns about central bank independence in developed markets. This shift makes it difficult for demand for gold as a macro policy hedge to recover as previously anticipated.
Comments