jilino1xyz| Why did gold and nonferrous metals skyrocket? The latest interpretation of fund managers

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Why did gold and nonferrous metals skyrocket? The latest interpretation of fund managers

Author: Wei Zhaoyu

Recently, affected by the expectation of interest rate cuts and the "epic short position" of New York copper, the "all-metal craze" in the global metal market continues to unfold. The prices of gold, copper and aluminum and other metals have risen one after another, but the performance on the equity side has been relatively weak, reflecting the market is still worried about the sustainability and space of metal price increases.

Judging from today's market trend, the price elasticity of the non-ferrous sector has finally responded, and various segments have launched upward attacks. The single-day gains of many ETFs such as gold stock ETFs, gold stock ETFs, non-ferrous 50 ETFs, and non-ferrous metals ETFs exceeded 4%.

Why can the non-ferrous sector perform so strongly? In response, a reporter from China Securities News and China Securities Taurus interviewed Huang Zhi, manager of CITIC Prudential China Securities 800 Nonferrous Fund.

In terms of gold, Huang Zhi believes that U.S. inflation slowed in April, retail sales and employment data showed that the U.S. economy has cooled, and the upward logic of precious metals has increased. In the medium and long term, gold's status in the asset allocation of central banks around the world continues to rise, central bank purchases of gold continue to increase, and precious metals have allocation value. Historically, gold investment opportunities are worthy of attention between the period when the Federal Reserve stopped raising interest rates and expected interest rate cuts.

In terms of industrial metals, Huang Zhi said that domestic real estate has recently formed a policy combination from both sides of supply and demand, which has a good boost to market confidence. Last Friday, property-related policies were released to reduce mortgage interest rates and down payment ratios in an effort to increase homebuyers 'willingness and support expected improvements in demand. Overseas, exports exceed expectations and the global economic recovery cycle may continue, providing support for commodity prices. With the gradual implementation of domestic stable growth policies, downstream demand for industrial metals is expected to improve. Macroeconomic benefits, short-term supply shortage expectations, and low inventories provide strong support for industrial metal prices.

In terms of small metals, Huang Zhi said that the supply side of the sector is currently relatively rigid, and short-term shocks have created a tight supply pattern. The replenishment of manufacturing stocks has brought about a gradual recovery of demand. Recently, small metals have generally increased, maintaining the previous judgment that they are expected to show the characteristics of long-term cattle. It is suggested that we can pay timely and appropriate attention to opportunities in sectors with strong cyclical characteristics such as non-ferrous metals based on our own investment goals and risk tolerance.