ETF Market Review Today | S&P Oil and Gas Related ETF Hits Daily Limit Up, Gold Related ETF Falls Over 9%

Why does gold’s safe-haven property fail during turmoil?

Market experienced a day of volatility and adjustment, with the three major indices opening lower and all falling more than 3%. In terms of sectors, the green energy concept defied the trend and strengthened, space photovoltaic concepts surged amid fluctuations, and the coal sector performed actively; on the decline side, precious metals concepts led the declines, and the tourism sector continued to adjust.

Regarding ETF performance, the S&P oil and gas-related ETFs hit the daily limit up.

As the US-Iran situation remains deadlocked, Goldman Sachs has raised its oil price forecast for the second time in less than two weeks, citing ongoing disruptions in the Strait of Hormuz and increasing structural risks in global supply as key reasons for expecting “higher oil prices to persist longer.”

On the decline side, gold-related ETFs fell over 9%.

Against the backdrop of escalating global geopolitical tensions, traditional safe-haven assets like gold not only failed to rise but actually declined. Some analysts believe that due to the Federal Reserve’s strong response, market expectations for rate cuts have significantly cooled, driving U.S. Treasury yields and the dollar index higher. Additionally, recent liquidity tightening caused by US private credit withdrawals has made the dollar both a safe haven and a source of returns, diverting safe-haven funds. As a non-yielding asset, gold’s opportunity cost rises with increasing U.S. Treasury yields.