Precious Metals Set to See Sentiment Recovery, Gold Stock ETF Funds Rise Over 1% Today

Why does short-term pressure on gold prices not affect its long-term investment value?

Recently, gold prices have faced short-term pressure mainly due to a strengthening US dollar index, rising US Treasury yields, and cooling expectations of Federal Reserve rate cuts. However, ongoing Middle East geopolitical conflicts, disruptions in Strait of Hormuz shipping, rising oil prices, and inflation expectations have increased the risk of stagflation globally. The medium- to long-term value of gold as an investment remains prominent. The People’s Bank of China continued to increase gold holdings in February, further reinforcing market confidence in gold’s monetary properties.

This week, the spot price of London gold fell to $5,019 per ounce, the 10-year US Treasury yield rose to 4.28%, real interest rates increased to 1.9%, and the US dollar index rose to 100.4. Oil prices remain high, intensifying inflation expectations. The Federal Reserve faces a dilemma: if upcoming inflation data significantly rises, markets may shift from “delaying rate cuts” to “expecting rate hikes.” However, if stagflation trading heats up, funds are likely to flow back into gold assets.

Gold stock ETFs closely track the CSI Shanghai-Shenzhen-Hong Kong Gold Industry Stock Index. This index selects 50 large-cap listed companies involved in gold mining, smelting, and sales from the mainland and Hong Kong markets to reflect the overall performance of gold industry listed companies in these regions.

Data shows that as of February 27, 2026, the top ten holdings of the CSI Shanghai-Shenzhen-Hong Kong Gold Industry Stock Index (931238) are Zijin Mining, China Gold, Shandong Gold, Chifeng Gold, Zhaojin Mining, Shanjin International, Hunan Gold, Zijin Gold International, Zijin Mining, and Shandong Gold, with the top ten holdings accounting for 61.77%. (The listed stocks are only index components and are not specific recommendations.)

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