Color ETF Penghua rises nearly 2%, more central banks increase gold holdings amid geopolitical risks

On the news front, Shaokai Fan, head of the Global Central Banks at the World Gold Council, stated on Tuesday that gold’s role as a hedge against de-dollarization and geopolitical risks is expected to encourage central banks that have previously been absent from the market to buy this precious metal this year. He said that in recent months, central banks from countries such as Guatemala, Indonesia, and Malaysia have started purchasing gold, either returning to the market after a long hiatus or making their first gold purchases. “In the past few months, some new central banks, or those that have been inactive or absent from the gold market for a long time, are entering the gold market. I believe this trend could continue through 2026.”

CICC pointed out that although short-term market panic driven by Middle East tensions and stagflation trading has led to gold sell-offs, the value of holding gold is expected to further strengthen after the price correction. First, as tensions in the Middle East gradually peak, the panic-driven sell-offs caused by conflicts are likely to diminish. Second, as the economic slowdown caused by the conflict becomes more apparent, the Federal Reserve’s tightening expectations are expected to face significant constraints, making it difficult for real US interest rates to rise further. Third, regardless of how the Iran situation unfolds or concludes, it will further promote global multipolarization and the fragmentation of the dollar-dominated international monetary system, thereby increasing the strategic value of gold in the de-dollarization process.

As of 11:19 on March 24, 2026, the China Securities Gold and Nonferrous Metals Industry Index (399395) surged 1.71%, with constituent stocks Shengtuo Mining up 7.57%, Zijin Mining up 5.23%, Luoyang Molybdenum up 4.43%, and other stocks such as Xingye Silver, Baiyin Nonferrous Metals following suit. The Precious Metals ETF Penghua (159880) rose 1.94%, with the latest price at 1.89 yuan.

The Precious Metals ETF Penghua closely tracks the China Securities Gold and Nonferrous Metals Industry Index, which is based on the China Securities Industry Classification Standard. It selects 50 securities with prominent scale and liquidity within the nonferrous metals industry as samples, reflecting the overall performance of listed companies in the nonferrous metals industry traded on the Shanghai, Shenzhen, and North exchanges, providing the market with an index-based investment target for specific industry segments.

Data shows that as of February 27, 2026, the top ten holdings of the China Securities Gold and Nonferrous Metals Industry Index (399395) were Zijin Mining, Luoyang Molybdenum, Northern Rare Earth, Huayou Cobalt, Aluminum Corporation of China, China National Gold Group, Ganfeng Lithium, Shandong Gold, Xingye Silver, and Xiamen Tungsten, with the top ten holdings accounting for 48.78% of the total.

The Precious Metals ETF Penghua (159880) is available through over-the-counter connections (A: 021296; C: 021297; I: 022886).