Gold is hot again, and the non-ferrous leading ETF (159876) soared nearly 3% intraday, and the agency: a positive feedback mechanism for gold prices may be forming
Overnight, the international gold price (COMEX gold) reached $2,256.9 per ounce, up as much as 1.9% during the day, hitting another all-time high.
Image source: Wind
Domestic gold stocks were also boosted today (29 March 2024) as the international gold price climbed. As of the publication, the top 5 constituent stocks of the CSI Nonferrous Metals Index are all gold (Shenwan tertiary industry) stocks, among them, Shandong Gold and CICC Gold led the rise, rising by more than 6%.
Image source: Wind
In terms of capital, the non-ferrous metal sector received a net inflow of more than 1.3 billion yuan, ranking first among the 31 first-class industries of Shenwan.
Image source: Wind
In terms of popular ETFs, the leading non-ferrous ETF (159876), which closely tracks the CSI Nonferrous Metals Index, opened higher and moved higher, fluctuating and rising, with the price soaring nearly 3% intraday and now up 2.47%.
Image Credit: Snowball
Huatai Securities said that all signs show that the current market for the Fed's interest rate cut rhythm and pace of certainty, are rising rapidly, while the recent acceleration of gold prices has promoted the demand for gold consumer market climbing, and the positive feedback mechanism of gold prices is forming. It is expected that gold prices will continue to fluctuate and upward trend in the long term, and with the simultaneous rise in price and demand, we are optimistic about the investment opportunities in the gold sector in 2024.
It is worth noting that as of March 28, the price-to-book ratio of the underlying CSI Nonferrous Metals Index tracked by the leading ETF (159876) was 2.20 times, which was at the quantile of 24.6% since the index was listed.
Image source: Wind
According to public information, the non-ferrous leading ETF (159876) closely tracks the CSI Nonferrous Metals Index (930708.CSI), as of February 29, according to the three-level industry of Shenwan, copper, aluminum, and gold accounted for 21.8%, 16%, and 13.1% respectively, accounting for about 50% in total. The index covers 60 leading stocks such as energy metals, small metals, industrial metals, precious metals, etc., under the background of carbon neutrality, the middle and lower reaches of the new energy industry have been in a stage of rapid and stable growth and expansion for a long time, and the fundamentals of the upstream industry chain are high, and the prices of non-ferrous metals are expected to continue to rise, with strong certainty.
Data and chart sources: Wind, Shanghai and Shenzhen Stock Exchanges, Huabao Fund, etc
Risk Warning: Nonferrous Metals Leading ETF (159876) passively tracks the CSI Nonferrous Metals Index (930708.CSI), the base date of the index is 2013.12.31, the release date is 2015.7.13, the composition of the index constituents is adjusted in a timely manner according to the index compilation rules, and its backtest historical performance does not indicate the future performance of the index. The index constituents in this article are for illustration purposes only, and the individual stock descriptions are not intended as investment advice of any kind, nor do they represent the position information and trading trends of any fund under the manager. The risk level of the fund assessed by the fund manager is R3-medium risk, suitable for investors with balanced (C3) and above, and the suitability matching opinion is subject to the sales agency. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only, and investors shall be responsible for any investment behavior determined independently. In addition, any opinions, analysis and forecasts in this article do not constitute any form of investment advice to the reader, nor do they assume any responsibility for any direct or indirect losses arising from the use of the content of this article. Fund investment is risky, the past performance of the fund is not indicative of its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the performance of the fund, so fund investment should be cautious.