The E Fund Gold and Mining ETF (02824) rose more than 5% in late trading. As of the latest update, it increased by 5.01% to HK$11.52, with a turnover of HK$4.0739 million. On May 5, the U.S. President announced the suspension of the "Freedom of Navigation" operation aimed at guiding ships through the Strait of Hormuz, citing "significant progress" in reaching a comprehensive agreement with Iran. Earlier, Iran made concessions in a new negotiation proposal submitted in early May, no longer requiring the U.S. to lift sanctions first and agreeing to open the strait initially. Related analysis indicates that as signs show the ceasefire between the U.S. and Iran remains in place, market concerns about a full-scale war have diminished, helping to alleviate worries about surging inflation and boosting gold prices. By May 6, gold prices in the Asian market rebounded strongly by nearly 1.2% in early trading, climbing back above $4,600. Zhenxin Futures believes that, in the short term, precious metal prices are range-bound; from a medium- to long-term perspective, strategic reserve demand for gold will provide a floor for prices. Structural issues in the U.S. labor market remain unresolved, and while the pace of interest rate cuts may be delayed, long-term expectations for rate reductions persist, offering sustained price support for gold.
Comments