Hong Kong Stock Concept Tracking | European Investors Urgently Withdraw from US Treasuries, Institutions Remain Bullish on Gold in the Long Term (with Concept Stocks)

Zhitong
2025.04.09 01:27
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European investors, concerned about U.S. trade policies, have begun transferring gold from the U.S. to Europe, leading to a decline in gold prices during the Asian morning session. Nevertheless, analysts expect gold prices to rise soon due to increasing expectations of interest rate cuts by the Federal Reserve. Related Hong Kong stocks include Zijin Mining, SD GOLD, and others

Gold fell in early Asian trading as investors may be liquidating long positions to raise cash.

According to the Zhitong Finance APP, Stephane Boujnah, CEO of Euronext, stated that the trade policies of the Trump administration have caused significant unease among some European investors, who are beginning to move gold out of the United States.

"We are witnessing a moment where the market is struggling to adapt to a drastically changed America," Boujnah said in an interview with France Inter on Tuesday. "A very new factor is that we see European investors transferring physical assets like gold from the United States to Europe." "The business community is very fearful," Boujnah said during the interview. "We are going through a period of mourning for the America of the past, as it now looks more like a newly emerging country."

Carsten Fritsch from Deutsche Bank's research department stated, "This may sound strange, but this situation has occurred several times during periods of heightened risk aversion, as market participants had to sell gold positions to cover losses elsewhere." However, the commodity analyst also mentioned that the recent market expectations for a Federal Reserve rate cut suggest that gold prices may soon rise again.

He pointed out that federal funds futures imply that the Federal Reserve will cut rates by 100 basis points by the end of the year.

Zhongtai Securities released a research report stating that in the short term, it is advisable to embrace safe-haven assets like U.S. Treasuries and gold, while there is no urgency to "bottom fish" in risk assets.

CITIC Securities' research report indicated that based on its gold price analysis framework, it is optimistic about gold prices in 2025. The global central bank's gold purchasing behavior is expected to continue, and the signaling effect of central banks announcing gold purchases may become more pronounced.

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), Tongguan Gold (00340), Chifeng Gold (06693), etc

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