The global commodity supply shock intensified, with last week's hot spots spreading from the energy category to the industrial metals sector. Rising inflation expectations have also led to a recovery in precious metal prices, but the comparative disadvantage of gold funds still limits their price performance due to their high sensitivity to market interest rates.
Mr. Wang Xiang
Bosera Gold ETF Fund Manager
Last week's gold market was volatile, driven by stronger-than-expected US inflation data, gold prices surged and hit the $1800/oz mark, but were weighed down by the Minutes of the Federal Reserve's hawkish meeting and strong US retail sales data, gold prices once again staged a "high platform diving" scene, closing below $1770 / ounce on Friday.
Bosera Gold ETF fund manager Wang Xiang said that the US inflation data in September supports the "temporary" statement about the Fed is biased, from the sub-data, food prices are still accelerating year-on-year, natural gas prices under the energy shock increased month-on-month, rent and social services-related service data is still being repaired, superimposed on the recent higher than expected hourly wage data and other factors, the US inflation outlook will continue for a period of time.
However, even against this backdrop, gold assets remain bleak, with global ETF and futures holdings indicating a continued lack of financial attention. Gold's biggest problem at the moment is its high sensitivity to interest rates, which leads to a comparative disadvantage relative to other commodities in an environment where market interest rates are rising. Although the terminal financial subsidies in the United States have expired one after another, the accumulated excess reserves still give the resident sector a relatively solid purchasing power base.
U.S. retail consumption has exceeded expectations for two consecutive months, and with the recent U.S. epidemic data gradually falling back, and the expectation of opening the border in November, there is a strong expectation that the US Treasury market in the environment of improved economic conditions will continue to revise upwards. As a benchmark for the cost of funding interest rates, it is understandable that gold is difficult to attract attention in the presence of higher potential returns in the market, which is why the gold-silver ratio has continued to decline since October.
Looking ahead, when the Sword of Damocles of the Fed Taper really falls, or becomes an opportunity for the momentum of the precious metals market, before which range shocks may be the main tone of the precious metals market.
Bosera Gold ETF Fund (159937) and Linked Fund (002610,002611) track RMB gold price performance by investing in gold spot contracts on the Shanghai Gold Exchange. Investors can buy connected funds in official channels such as Bosera Fund APP and Bosera Fund official website, with a minimum of 1 yuan to buy, and some channels buy 0 rates (subject to the announcements of each channel), which further enriches the investment methods of investors in gold.
Boshi Gold ETF: Wang Xiang has been in office since 2016.11.02; Zhao Yunyang has been in office since 2015.10.08
Boshi Gold ETF Connection A/C: Wang Xiang has been in office since 2016.11.02; Zhao Yunyang has been in office since 2016.05.27
Risk Warning:
The fund details mentioned in this article can be found in the fund product channel (http://www.bosera.com/fund/index.ht-ml) on the official website of Bosera Fund, and the website for the introduction of relevant business qualifications of Bosera Fund is: http://www.bosera.com/column/index.do?clas-sid=00020002000200010007.
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