Spot gold breaks through $4,600 during trading! Dovish signals from the Federal Reserve + performance boost, Huabao Fund's Non-Ferrous Metals ETF (159876) receives a net subscription of 9 million shares!

Previously, the non-ferrous ETF Huabao (159876), which had risen for two consecutive days, declined today (March 31) along with the market, closing down 1.34%. Funds may be looking for opportunities to buy at lower prices during the dip. Data shows that this ETF received a net subscription of 9 million units throughout the day!

In terms of specific sectors, copper leader Jintian Shares led the gains with over 4%, Chujiang New Materials rose more than 2%, gold leader Hunan Gold increased over 1%, Western Gold and Chifeng Gold closed in the red against the trend, and rare earth leader Northern Rare Earth rose over 1%. On the other hand, lead-zinc leader Guocheng Mining fell more than 8%, lithium industry leader Yongxing Materials dropped over 6%, leading the declines and dragging down the index performance.

On the macro front, Federal Reserve Chair Powell stated on Monday that, amid Middle East geopolitical events causing energy shocks, the Fed tends to keep interest rates unchanged and temporarily “ignore” the impact of this shock. Industry insiders pointed out that Powell’s remarks eased market fears that the Fed would be forced to tighten monetary policy to curb accelerating inflation, prompting traders to reprice the small possibility of rate cuts this year.

Guoxin Futures said that Powell’s dovish signals led the market to withdraw bets on rate hikes this year, with U.S. Treasury yields falling, providing support for precious metals. In the short term, geopolitical news is switching frequently, with Iran and the U.S. oscillating between negotiations and confrontation, making market sentiment highly sensitive and causing significant volatility in precious metals. In the medium to long term, geopolitical risks persist, the global central bank’s gold-buying logic remains unchanged, and the Fed’s rate cut trajectory still exists, so the bullish case for precious metals remains intact.*

Guotou Securities believes that, given the previous panic sell-off caused by expectations of interest rate hikes in the non-ferrous metals sector, current valuations are already quite low and risks are controllable. Additionally, for industrial metals (copper, aluminum, tin, etc.), an energy crisis could lead to supply contractions, potentially creating a positive feedback loop: energy crisis → supply reduction of overseas minerals (copper, gold, aluminum, tin, etc.) → rising prices. They remain optimistic about the future performance of the non-ferrous metals sector.*

In terms of performance, leading non-ferrous companies have shown impressive results. As of March 30, 24 constituent stocks of the Huabao non-ferrous ETF (159876) had released their 2025 annual reports, with 22 listed non-ferrous metal companies profitable, 13 achieving double-digit year-over-year net profit growth, and companies like Ganfeng Lithium, China Rare Earth, Guocheng Mining, and Tianqi Lithium seeing over 100% YoY growth in net profits attributable to shareholders.

Shenwan Hongyuan Securities pointed out that under the long-term trend of de-globalization, the investment logic for precious metals, bulk commodities, and strategic small metals has entered a new paradigm. The non-ferrous sector is expected to continue upward, and short-term fluctuations may present good opportunities for allocation within the year. Huatai Securities also highlighted that the recovery potential after the overall oversold condition of the non-ferrous metals sector is worth paying close attention to.*

【The non-ferrous metals boom has arrived, and the “super cycle” is unstoppable】

The Huabao non-ferrous ETF (159876) and its associated funds (Class A: 017140, Class C: 017141) fully cover industries such as copper, aluminum, gold, rare earths, and lithium, including precious metals (hedging), strategic metals (growth), and industrial metals (recovery). This comprehensive coverage better captures the beta movements of the entire sector across different economic cycles. Additionally, this ETF is a margin trading and short-selling target, making it an efficient tool for one-click exposure to the non-ferrous metals sector.

As of the end of February, the Huabao non-ferrous ETF (159876) had a latest scale of 2.43B yuan, with an average daily trading volume exceeding 100 million yuan over the past month. Among all ETFs tracking the same index in the market, it ranks first in both size and liquidity.

Institutional reference sources: ① Guoxin Futures’ March 17 report “FOMC Meeting Imminent, Precious Metals Short-term Under Pressure, Mid-term Outlook Positive”; ② Guotou Securities’ March 22 report “Recession Expectations Drive Metal Declines, Focus on Structural Opportunities”; ③ Shenwan Hongyuan Securities’ March 18 report “2026 Spring Non-Ferrous Metal Industry Investment Strategy: Progress Amid Volatility”; ④ Huatai Securities’ March 10 report “Non-Ferrous Metals: Recovery Opportunities and Allocation Logic Under Middle East Geopolitical Catalysts”.

Reminder: Recent market volatility may be significant; short-term gains or losses do not predict future performance. Investors should invest rationally based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management.

Risk warning: The Huabao non-ferrous ETF passively tracks the CSI Non-Ferrous Metal Index, which was base date 2013.12.31, published on 2015.07.13. The index’s constituent stocks are adjusted periodically according to the index rules. Its backtested performance does not predict future results. The constituent stocks shown here are for display only; descriptions of individual stocks are not investment advice and do not reflect holdings or trading activity of any fund managed by the manager. The fund’s risk level is assessed as R3—medium risk, suitable for balanced (C3) and above investors. Suitability matching opinions are subject to the sales institution’s judgment. All information in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, or any other statements) is for reference only. Investors are responsible for their own investment decisions. The views, analyses, and forecasts in this article do not constitute investment advice and the author is not responsible for any direct or indirect losses resulting from the use of this content. Fund investments carry risks; past performance does not guarantee future results. Performance of other funds managed by the fund manager does not guarantee the performance of any particular fund. Invest cautiously.

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