Hong Kong Stock Concept Tracking | The world's largest gold ETF continues to increase its holdings, and the gold sector remains bullish (with related stocks)

Zhitong
2025.03.18 02:37
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The world's largest gold ETF SPDR Gold Trust increased its holdings by 0.86 tons, with a current holding of 907.27 tons. BlackRock stated that gold may be a better diversification investment tool than U.S. Treasury bonds in the current environment. UBS raised its gold price forecast, expecting it to reach $3,200 per ounce in the next four quarters. U.S. retail sales fell short of expectations, and the core inflation rate exceeded the Federal Reserve's target, which may limit the space for interest rate cuts. Related Hong Kong stocks include Zijin Mining, SD GOLD, and others

Gold has once again risen above $3,000 per ounce.

U.S. retail sales for February recorded a month-on-month increase of 0.2%, lower than the expected growth of 0.6%, with the previous value revised down from -0.9 to -1.2%.

Additionally, UBS has become the latest bank to raise its gold price target, citing an increased likelihood of escalating global trade wars.

Analysts expect that trade tensions will continue to drive investors towards gold as the ultimate safe-haven asset.

UBS analysts Wayne Gordon and Giovanni Staunovo stated in a report on Monday that gold prices are expected to reach $3,200 per ounce over the next four quarters, an increase from the previously maintained long-term forecast of $3,000 per ounce.

According to the Zhitong Finance APP, the world's largest gold ETF—SPDR Gold Trust—saw an increase of 0.86 tons in holdings compared to the previous day, with the current holding amounting to 907.27 tons.

BlackRock stated that long-term U.S. Treasuries have acted as a buffer during the recent stock market pullback, but their diversification effect has weakened since the pandemic. The BlackRock report indicated that as investors demand more compensation for the risks associated with holding long-term bonds, known as term premium, yields may rise from current levels.

The report also noted that the U.S. core inflation rate remains above the Federal Reserve's 2% target, which will limit the Fed's ability to cut interest rates. The rising U.S. fiscal deficit, even with revenue from tariffs and potential spending cuts, may also lead to an increase in term premium.

In the past, even with a heavy government debt burden, investors still viewed long-term bonds as low-risk because they believed that low inflation and low interest rates would persist.

However, the report also stated that this fragile balance has been disrupted.

BlackRock indicated that in this environment, gold may be a better diversification investment tool than U.S. Treasuries.

Hong Kong stocks related to gold and precious metals:

Zijin Mining (02899), SD-GOLD (01787), Zhaojin Mining (01818), Lingbao Gold (03330), China Gold International (02099), WanGuo Gold Group (03939), LaoPu Gold (06181), etc

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