The Leveraged Gold ETF (07299) experienced another decline exceeding 2%. At the time of writing, it was down 2.6% to HK$20.98, with a turnover of HK$10.394 million.
Market attention is focused on the upcoming testimony of the new Federal Reserve Chairman, Kevin Warsh, before Congress. His schedule includes a hearing with the House Financial Services Committee on Tuesday, Eastern Time, followed by testimony before the Senate Banking Committee on Wednesday.
Coinciding with these events, the latest US inflation data is set for release. The Labor Department will publish the June Consumer Price Index (CPI) on Tuesday and the June Producer Price Index (PPI) on Wednesday.
Industry analysts suggest that signs of accelerating inflation or indications that it will remain elevated in the coming months could increase the likelihood of the Federal Reserve raising interest rates by year-end.
Analysis from CITIC Futures points out that, in the short term, while escalating geopolitical tensions typically boost gold's safe-haven appeal, the current market focus is more on their impact on energy prices and inflation expectations. They anticipate gold prices may continue to fluctuate at low levels. Recurring geopolitical conflicts could provide intermittent support, but upward momentum is likely to be capped by concerns over energy-driven inflation and the Federal Reserve's relatively hawkish policy stance.
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