Hong Kong Stock Concept Tracking|The world's largest gold ETF continues to increase its holdings, and the bullish trend in the gold sector continues unabated (with concept stocks)

Gold is once again at $3,000 per ounce.

The monthly retail sales rate in the US recorded 0.2% in February, lower than the expected increase of 0.6%. The previous value was revised down from -0.9 to -1.2%.

Furthermore, UBS Group (UBS) became the latest bank to raise the target price of gold due to the increased possibility that the global trade war will continue to escalate.

Analysts expect trade tensions will continue to drive investors to gold, the ultimate safe-haven asset.

UBS analysts such as Wayne Gordon and Giovanni Staunovo said in a report on Monday that the price of gold is expected to reach 3,200 US dollars/ounce in the next four quarters, up from the previous long-term forecast (3,000 US dollars/ounce).

The Zhitong Finance App learned that SPDR Gold Trust, the world's largest gold ETF, increased its holdings by 0.86 tons compared to the previous day, and the current holding volume is 907.27 tons.

BlackRock said that long-term US Treasury bonds have acted as a buffer in the recent stock market pullback, but since the pandemic, the diversification of its investment portfolio has weakened. According to the BlackRock report, yields seem likely to rise from current levels as investors demand more compensation for the risk of holding long-term bonds, that is, term premiums.

According to the report, in addition, the US core inflation rate is still higher than the Fed's 2% target, which will limit the room for the Fed to cut interest rates. The US fiscal deficit continues to rise, and even revenue from tariffs and potential spending cuts could lead to a rise in term premiums.

In the past, even when the government was heavily burdened with debt, investors thought long-term bonds were less risky because they believed low inflation and low interest rates would continue.

But the report also says that this fragile balance has been broken.

BlackRock said that in this environment, gold may be a better diversified investment tool than US Treasury bonds.

Hong Kong stocks related to gold and precious metals:

Zijin Mining (02899), Shandong Gold (01787), Zhaojin Mining (01818), Lingbao Gold (03330), China Gold International (02099), Wanguo Gold Group (03939), Laosou Gold (06181), etc.