Surging international oil prices have pushed up inflation and rate hike expectations, weighing on spot gold. Yet the Bosera Gold ETF has attracted net inflows for six consecutive trading days, pulling in a total of 254 million yuan. On July 23, spot gold tumbled more than 2 percent to $4,049.34 per ounce, while the US dollar index rose 0.32 percent overnight, further pressuring gold prices. Meanwhile, WTI crude jumped 6.17 percent to $92.19 a barrel and Brent crude surged 7.04 percent to $100.69 a barrel, reinforcing tightening expectations that the probability of a Fed rate hike in September has climbed to around 82 percent. CICC Wealth Futures noted that escalating US-Iran tensions have driven oil prices sharply higher, putting pressure on gold which had just rebounded. If oil prices continue to rise sharply in the short term, gold will face its biggest risk from runaway oil prices. As of early trading on July 24, the Bosera Gold ETF fell 1.80 percent to 8.38 yuan, but it has still gained 2.34 percent over the past week, with average daily turnover of 1.323 billion yuan over the past year.
Oil price surge raises rate hike expectations, pressuring gold prices and the Bosera Gold ETF
