$SD GOLD(01787.HK)1. Its profits depend entirely on the price of gold. If the Fed keeps interest rates high for too long, or if the economy really tanks, and the price of gold drops, its profits will shrink accordingly.

2. Mines are dug deeper and farther away, and mining costs rise every year. If the price of gold doesn’t rise significantly, these profits can easily be eaten up by costs.

3. As a domestic leader, it seems stable, but in the face of global risk events or a strong dollar cycle, funds may prefer more international assets for safety, and it might not be their first choice.

Gold prices are extremely sensitive to the Fed’s interest rate policy. As long as the market expects high rates to persist or rate cuts to be delayed, gold prices will struggle, and ETFs will follow the decline.

Gold doesn’t pay interest or dividends. During periods of high real dollar interest rates when 'cash is king,' the opportunity cost of holding gold is too high, and funds may flow out.

If global geopolitical conflicts or recession fears—the main drivers of 'safe-haven demand'—ease, the key support for gold prices will disappear, and ETF prices will lose their main momentum!