Geopolitical conflicts escalate, gold may present a buying opportunity, Huaxia Gold ETF (518850) and Huaxia Gold Stock ETF (159562) have declined over 2%

On April 2, 2026, the three major A-share indices all declined. By the close, the Huaxia Gold ETF (518850) fell 2.73%, with the latest price at 9.83 yuan. The Huaxia Gold Stock ETF (159562) dropped 2.90%, with the latest price at 2.45 yuan. The holdings led by Xiaocheng Technology declined 7.39%, Chifeng Gold fell 7.05%, Hunan Gold dropped 5.48%, Wanguo Gold Group decreased 4.85%, and Zhaojin Gold declined 4.82%.

In terms of news, on April 1, local time, U.S. President Trump delivered a brief televised speech from the White House, providing the latest update on Iran. Claiming victory in military actions against Iran, Trump proclaimed a “rapid, decisive, overwhelming victory” in the Iran conflict during his speech. He also urged countries to “fight for oil” in the Strait of Hormuz.

Everbright Securities pointed out that looking ahead, after the escalation of geopolitical conflicts is resolved, there may be a long-term allocation opportunity in the metals sector. Currently favored metal varieties include gold and silver amid major power rivalries. Regarding gold, in the short term, it is mainly constrained by liquidity suppression from geopolitical conflicts and the potential for further oil price increases, which could boost the likelihood of Federal Reserve rate hikes; after the negative impact of further geopolitical conflict escalation subsides, a buying opportunity for gold may emerge; in the long term, the weakening of the US dollar’s credit and the continued logic of central banks purchasing gold support an optimistic outlook for gold prices.

Related products:

Huaxia Gold Stock ETF (159562), off-market connection A: 021074, connection C: 021075

Huaxia Gold ETF (518850), off-market connection A: 008701, connection C: 008702