Hot Stock: International Gold Price Breaks $4,400! Precious Metal ETFs Surge, 00708L Up Nearly 10% Weekly

Taiwan's stock market has been consolidating recently, while precious metals have taken the lead in bullish sentiment. International gold prices successively broke through $4,300 and $4,400 per ounce, boosting two gold ETFs—Yuanta S&P Gold (00635U-TW) and Yuanta S&P Gold Bull 2X (00708L-TW)—to continued gains, reaching new highs since June 18. Notably, 00708L posted a weekly gain of approximately 9%.

Precious metal ETFs benefited from the resumption of U.S.-Iran conflict talks and falling crude oil prices. Over the past week, 00708L rose 8.91%, 00635U gained 4.5%, and 00738U increased by 6.1%, reclaiming the NT$50 mark. The overall trend for precious metal ETFs continues to strengthen.

Recent support for gold prices includes positive global oil supply outlooks, which have dampened expectations of U.S. interest rate hikes. FedWatch data shows that market expectations for a September rate hike dropped from 63.4% at the end of July to 54.8% on August 6. Concurrently, the U.S. Dollar Index fell from over 101 on July 28 to around 99.7. U.S. Treasury Secretary Bessent stated in an interview that core inflation remains stable and is slowing down.

Analysts note that gold prices found strong support at $4,000 per ounce. As geopolitical tensions ease, rate hike expectations cool, and the dollar weakens, precious metals are rising against the broader trend. According to a World Gold Council survey of 74 central banks, about 45% plan to increase their gold reserves within the next year. Notably, the Bank of Korea has restarted its gold purchasing program after more than 13 years and is simultaneously investing in gold ETFs.

Silver, possessing both precious metal and industrial metal characteristics, has recently seen rising physical demand expectations driven by trends such as AI infrastructure development, data center expansion, solar energy, and energy transition. With limited silver supply growth, steady industrial demand, and sustained bullish sentiment in precious metals, medium- to long-term prices remain supported.

In an environment of ongoing global uncertainty, gold’s value as an asset allocation tool remains highly regarded by markets. Investment banks including Bank of America and UBS believe this is not the beginning of a long-term bear market. Structural buying from central banks worldwide continues to be robust, and the long-term bullish structure remains unchanged.

*Disclaimer: Mentions of individual stocks, funds, or futures products in this article are for reference only and do not constitute investment advice. Investors should make independent judgments, carefully assess risks, and bear their own profits and losses.