Gold prices hit a new high, with nearly 40% of theme funds yielding over 30% of their annual returns
2024-10-31
The domestic and international gold prices continue to rise, reaching new highs. On October 30th, the prices of major contracts for London gold and New York gold both broke new highs, with the highest prices reaching $2789/ounce and $2800/ounce as of press time. The price of Shanghai Gold Au99.99 has continued to rise after breaking through a new high the previous day. Benefiting from the rise in tracking targets, the yield of gold themed funds has also skyrocketed, with an average annual return of 29.14%, of which nearly 40% of products have a return rate exceeding 30%. In addition, as of the end of the third quarter, the total size of gold themed funds also increased by about 7% month on month. In the eyes of industry insiders, the safe haven value and preservation advantage of gold are still relatively obvious, and there is room for further record highs. The price of gold is expected to move towards $3000 per ounce in the future. Spot gold prices have once again broken through historical highs. On October 30th, as of press time, the current price of London gold reached a record high of $2789 per ounce. On the same day, the price of the New York Gold's main continuous contract also rose to $2800 per ounce, setting a new historical high. Looking back at the year, the price of gold has repeatedly broken historical records. As of 14:00 on October 30th, the main contracts of London gold and New York gold have both risen by over 34% in consecutive years. It is worth mentioning that the price of gold in Shanghai also frequently broke historical records during the year. According to data from the Shanghai Gold Exchange, on the morning of October 30th, the price of Shanghai gold Au99.99 was 635.36 yuan/gram, breaking the historical record again compared to the previous day's closing of 630 yuan/gram. Bosera Gold ETF fund manager Wang Xiang said that the US election is only one week away. Due to the uncertainty of future policy direction, US Treasury bonds have been experiencing continuous selling recently, and the rise in interest rates has also triggered adjustments in stock and commodity markets. The US dollar index and gold have both risen supported by safe haven sentiment. In the third quarter, the US economy continued to expand, and GDP data will also be released. Interest rate policies and inflation expectations have a neutral impact on gold prices. Short term gains are more affected by geopolitical factors and hedging. With the landing of the election results, there may be situations like in 2016 where profit taking occurs and causes significant fluctuations in gold prices. Investors should pay attention to trading rhythm Wang Xiang reminded. While the price of gold continues to rise, the yield of gold themed funds is also high. According to iFinD data from Tonghuashun, as of October 29th, the annual returns of 43 gold themed funds (calculated separately for shares, the same below) that can be obtained are all positive, with an average return of 29.14%. Among them, 17 products have a return rate higher than 30%, accounting for nearly 40%. Specifically, Huitianfu Gold and Precious Metals LOF leads other products with an annual return rate of up to 32.1%. Huitianfu Gold and Precious Metals C, as well as E Fund Gold themed LOFs, followed closely behind with annual returns of 31.58% and 31.41%, respectively. The annual return rate of the Southern Shanghai Gold ETF initiated by Link C, which ranks last, also reached 26.24%. While the yield is soaring, gold has also become one of the eye-catching investment varieties this year, and the scale of related thematic funds has increased accordingly. According to the data, as of the end of the third quarter, the total size of the 37 gold themed funds (calculated by combining shares) available for data reached 95.456 billion yuan, an increase of 6.244 billion yuan month on month, with a growth rate of about 7%. Among them, the combined scale of multiple products such as CCB Shanghai Gold ETF, CCB Shanghai Gold ETF Connect, Bank of China Shanghai Gold ETF Connect, Qianhai Open Source Gold ETF Connect, and Huaxia CSI Shanghai Shenzhen Hong Kong Gold Industry Stock ETF Initiated Connect doubled month on month. Looking ahead to the future, financial commentator Guo Shiliang believes that gold prices may move towards $3000 per ounce. At present, the tense geopolitical situation and the expectation of interest rate cuts by the Federal Reserve support the sustained rise of gold prices. In addition, the safe haven value and preservation advantages of gold are still relatively obvious, and there is still room for gold to continue to reach new highs. However, gold is a non interest bearing asset, and investing in gold and related themed products needs to consider the issue of not generating interest income during the holding period. Therefore, once investing in gold is trapped at a high level, the investment risk should not be underestimated. In history, the longest bear market in gold has been more than ten years, and the time cost of the last round of gold bear market was about four years, which cannot be underestimated
Edit：Yao jue Responsible editor：Xie Tunan
Source：Beijing Business Today
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