Gold prices fluctuate and pull back, with Huaxia Gold Stock ETF (159562) experiencing a deep correction and falling over 3%, potentially a good opportunity to buy on dips.

On March 26, gold prices fluctuated lower, with the Shanghai Gold Exchange SGE gold 9999 down 1.4%, and gold-related products continued to decline. As of 13:30, the gold ETF Huaxia (518850) fell 1.17%, and the gold stock ETF Huaxia (159562) dropped 3.19%.

In terms of news, Iranian state media reported that Iran rejected the U.S. peace plan, and all parties are still launching military offensives.

Huatai Futures believes that the main catalyst for the rebound in precious metal prices lies in the easing of liquidity concerns brought about by the reduction of geopolitical conflicts, leading to a significant repair in market risk appetite; however, geopolitical risks still exist, and the U.S. does not seem to have the initiative to cease hostilities at any time. If the U.S. and Iran cannot reach an agreement on ceasefire conditions, the possibility of conflict escalation cannot be ruled out, so strategically, it is not advisable to completely shift towards trading based on the end of the conflict in the short term. Therefore, it is expected that gold prices will mainly exhibit a fluctuating pattern in the near term.

In the past few sideways periods following new highs in gold prices, although gold stocks may show temporary divergence, once gold prices stabilize, gold stocks have always completed their recovery at a rate exceeding that of gold prices.

After recent deep adjustments, the valuations of gold stocks have returned to a relatively reasonable range. Although short-term gold prices may still face adjustment pressure, under the backdrop of high global inflation, debt expansion, a weakening dollar, and escalating geopolitical conflicts, the long-term upward logic for gold has not changed. Following significant recent adjustments and the gradual disclosure of 2025 annual reports by gold stock companies, gold stocks are expected to welcome the annual report market.

It is worth noting that the management fee plus custody fee for the gold ETF Huaxia (518850) and the gold stock ETF Huaxia (159562) totals a rate of 0.2%, which is among the lowest levels for similar products, helping investors participate in the gold market at a lower cost.

Daily Economic News