On the morning of June 12th, spot gold strengthened and traded around $3,375 per ounce, with an intraday increase of more than 0.6%. The latest inflation data released by the United States fell short of expectations, intensifying market expectations for the Federal Reserve to cut interest rates.
Among gold-related ETFs, the Shanghai Gold ETF (159830) rose by more than 1%, with a discount rate of 0.01%, and traded at a premium during the session. Wind data shows that the ETF saw a net inflow of funds again on June 11th, with a net inflow of 2.32 million yuan in a single day.
The Shanghai Gold ETF (159830) closely tracks Shanghai Gold (SHAU.SGE). In terms of fees, the management fee rate of the Shanghai Gold ETF (159830) is 0.25%, and the fund custody fee rate is 0.05%, both of which are lower than the average level of similar products. Additionally, this ETF supports T+0 trading. The ETF is also allocated over-the-counter linked funds (Link A: 014661, Link C: 014662).
According to CCTV Finance, data released by the US Department of Labor on June 11th showed that the US consumer price index (CPI) rose by 2.4% year-on-year in May, higher than the previous value but lower than expected. After excluding the prices of food and energy, which fluctuate greatly, the core CPI rose by 2.8% year-on-year and 0.1% month-on-month in May. The month-on-month increase was lower than expected for the fourth consecutive month. After the data was released, market expectations for the Federal Reserve to cut interest rates have risen. Traders generally expect the Federal Reserve to cut interest rates once before September and for the second time before the end of the year.
Huatai Futures pointed out that since May, the price of gold has been in a volatile pattern. This is related to the risk sentiment generated by Trump’s change in his attitude towards tariff policy. At the same time, the fact that Federal Reserve Chair Powell has always maintained a very cautious attitude towards interest rate cuts has also made gold lack further upward momentum. However, Trump has once again mentioned that he might consider replacing the chairperson of the Federal Reserve and urging the Federal Reserve to cut interest rates. This will undoubtedly increase the uncertainty of the market in the future. Therefore, for current operations, it is still recommended to mainly buy gold at low prices for hedging.
Hongyuan Futures pointed out that the expectation of the Federal Reserve cutting interest rates has been delayed, but the uncertainty of the Trump administration’s tariff policy, the continuous gold purchases by many central banks around the world, and the intractable geopolitical risks may make the prices of precious metals more likely to rise than fall.
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