ETF changes | Gold doubled in the South (07299), fell more than 2%, high oil prices strengthened inflationary stickiness, and gold valuations were under pressure

The Zhitong Finance App learned that when the South doubled its gold (07299), fell by more than 2%. As of press release, it fell 2.49% to HK$21.18, with a turnover of HK$13.5973 million.

According to the news, the recent escalation of the geographical situation in the Middle East (such as mutual attacks between Saudi Arabia and the Houthis and the attack on oil tankers in the Strait of Hormuz) has pushed Brent crude oil to around 107 US dollars/barrel. High oil prices reinforce sticky expectations of inflation, which in turn boosts US bond yields and expectations of the Federal Reserve's austerity, and ultimately suppresses gold valuations.

Also, according to market media reports, Aliya Moldabekova, Deputy Governor of the Central Bank of Kazakhstan, said that the central bank plans to reduce the share of gold in foreign exchange reserves by about 3 percentage points before the end of the year, to about 75%. The reduction in holdings will be carried out through two methods: options and physical gold, each accounting for half. Eastern Stock Exchange Futures pointed out that although the Central Bank of China has accelerated the increase in gold reserves, Kazakhstan plans to increase its holdings of US debt and insist on gold reserves. After the outbreak of the US-Iran war, dollar liquidity tightened and foreign exchange pressure in emerging markets increased. Total gold purchases by central banks around the world will drop further this year, and the momentum for rising gold prices will weaken.