The leveraged gold ETF, CSOP Gold 2x Long (07299), fell more than 3% in late trading. As of the latest update, it was down 3.57%, trading at HK$28.1, with a turnover of HK$46.6992 million.
Market attention is focused on the Federal Reserve's monetary policy meeting scheduled for April 28-29, which will be the final meeting under current Chair Jerome Powell's term. Broad expectations are for interest rates to remain unchanged, with investors watching for the Fed's assessment of inflation amid soaring energy prices and any signals regarding future policy direction.
Additionally, the yield on the 10-year U.S. Treasury note rose to around 4.35% as of April 27, while the U.S. dollar index maintained its strength, both factors exerting downward pressure on gold. Market expectations for a Fed rate cut within the year have dropped to below 40%.
According to market data, the price of gold has fallen nearly 11% since the outbreak of the Iran conflict, though it still shows a year-to-date gain of approximately 8%. Ray Dalio, founder of Bridgewater Associates, has urged investors to significantly increase their gold holdings. Despite uncertain price movements during the war period, Dalio believes the current macroeconomic environment is favorable for gold allocation. He also warned that the U.S. is entering a period of "stagflation," characterized by rising inflation alongside a weakening labor market.
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