Strait of Hormuz Standoff Escalates Sharply, Gold ETF Huaxia (518850) Receives Capital for Low-Point Layout, Institutions: Gold Enters Left-Side Batting Zone

GateUser-bd883c58 · 2026-03-24T03:30:35+00:00

On March 23rd, tensions escalated in the Strait of Hormuz, with Trump threatening to attack Iranian power plants. Iran responded by stating it would close the Strait of Hormuz. Crude oil prices fluctuated at elevated levels, while gold prices came under increasing pressure. Although gold faces near-term challenges, if the situation improves or conflict intensifies, gold still has upside potential, and investor confidence remains undiminished.

GateUser-bd883c58

2026-03-24 03:30:35

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On March 23, the confrontation in the Strait of Hormuz sharply escalated. According to CCTV News, on March 21 local time, Trump demanded Iran open the Strait of Hormuz completely within 48 hours, or the U.S. would strike and destroy various power plants inside Iran; Iran’s armed forces issued a statement saying that if the threat to attack Iranian power plants is carried out, Iran will immediately take four “punitive” measures, including a full closure of the Strait of Hormuz.

Driven by this, Brent crude oil prices remain high, currently trading around $111.86. Gold prices continued to decline; as of press time, Gold ETF Huaxia (518850) fell 5.28%, Gold Stock ETF (159562) fell 4.11%, and Oil ETF Huaxia (159189) rose 0.3% intraday. Notably, as of March 20, Gold ETF Huaxia (518850) has fallen over 7% in the past 20 days, while attracting more than 1.5 billion yuan in net inflows, showing a pattern of buying more as prices fall.

Guosheng Securities pointed out that the Middle East situation and a strong dollar suppress gold prices, placing gold in a left-side buying zone. Currently, gold faces short-term headwinds, but this does not change our long-term positive outlook. On one hand, if geopolitical tensions ease, gold has a logical case for a rebound; on the other hand, if the conflict continues to intensify, after breaking a certain threshold, investors may focus on stagflation risks. Coupled with the currently weak economic fundamentals and fiscal unsustainability—despite major global central banks raising interest rates—there will be many constraints. If inflation’s upward slope exceeds the rate of rate hikes, gold will strengthen significantly, maintaining bullish confidence.

It is worth noting that the management fee plus custody fee for Gold ETF Huaxia (518850) and Gold Stock ETF (159562), totaling 0.2%, are among the lowest in similar products, helping investors participate in gold market trends at lower costs.

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