Geopolitical negotiation deadlock, international oil prices surged at the open, gold prices retreated, and the Gold ETF Huaxia saw continued capital inflows, with a net inflow of 454 million for 6 consecutive days

On May 11, 2026, US-Iran negotiations hit a deadlock. International oil prices opened higher: WTI crude oil futures opened up to 3%, and Brent crude oil futures broke through $104 per barrel. Spot gold prices opened lower, falling below $4,700 per ounce. As of 10:00, Gold ETF Huaxia (518850) was down 0.95%, and Gold Stock ETF Huaxia (159562) was down 2.11%. Among holdings, more stocks fell than rose: Yuguang Gold & Lead led the gains, up 5.69%, Tongling Nonferrous rose 1.80%, and Laopu Gold rose 1.43%; Chifeng Gold led the declines, down 5.21%, Chifeng Gold fell 3.83%, and Zijin Gold International fell 3.65%.

In terms of net capital inflows, Gold ETF Huaxia recorded continuous net inflows for the past 6 days, with the highest net inflow on a single day reaching 114 million yuan, bringing the total “fund attraction” to 454 million yuan.

On the news front, according to local time on May 10, U.S. President Trump posted on his social media “Real Social,” saying that he has just read the response sent by Iran’s so-called “representatives,” and that he does not like it, calling it “completely unacceptable.” As reported by Iran on the 10th, Iran has rejected the proposal put forward by the United States, believing that agreeing to it would mean Iran yielding to excessive demands from President Trump. The report says that Iran demands the United States pay war reparations and confirms Iran’s sovereignty over the Strait of Hormuz. The Iranian side also emphasized that it is necessary to end sanctions against Iran and unfreeze the country’s frozen assets.

The normalization of geopolitical games is driving the precious metals allocation logic to move from “financial attributes” back to “strategic attributes.” With physical inventory becoming scarce and the premium in the Shanghai market standing out, the rise in industrial countries’ demand for secure reserves of physical resources is evident. Meanwhile, the strong US manufacturing PMI and the contraction in employment show a divergence, indicating early signals of stagflation. The Federal Reserve may keep interest rates high due to pressure related to safety stockpiling, and expectations of tighter global liquidity further reinforce gold’s existing haven value as the ultimate means of payment.

It is worth noting that the combined management fee and custody fee for Gold ETF Huaxia (518850) and Gold Stock ETF Huaxia (159562) is 0.2%, which is among the lowest levels in similar products, helping investors participate in the gold market at a lower cost.