Middle East Geopolitical Tensions Push Gold Higher! Hang Seng Gold ETF (03170.HK) Surges Over 3% at Opening

NewTimeSpace News :Escalating geopolitical tensions in the Middle East have fueled safe-haven demand in the precious metals market, compounded by uncertainty surrounding U.S. tariff policies. On March 2, gold prices opened higher across the board, with London spot gold climbing to $5,341 per ounce, representing a 1.21% gain. The Hang Seng Gold ETF (03170.HK) surged over 13% at the opening bell.

According to HKEX data, the Hang Seng Gold ETF (03170.HK) is a physical gold exchange-traded fund launched by Hang Seng Investment Management Limited on the Main Board of the Hong Kong Stock Exchange on January 29, 2026. It marks a significant milestone in the Hong Kong financial market's advancement toward the Web3.0 era and stands as one of the most innovative gold allocation instruments in the recent Hong Kong stock market.

The fund adopts a physical asset-backed model, with each fund unit fully backed by physical gold bars stored in designated vaults in Hong Kong. Based on pre-listing reference data, the net asset value per unit is approximately HKD 16, with a board lot size of just 50 units—translating to a low entry threshold of HKD 800. This is significantly lower than the capital required for traditional physical gold bar investments (typically tens of thousands of yuan), offering retail investors exceptional accessibility.

Since the beginning of 2026, brands such as Chow Sang Sang and Chao Hong Ji have implemented price adjustments, mostly focusing on individual product modifications or partial category increases. In late February, Chow Tai Fook also signaled impending price hikes for March. On February 26, reporters learned that Chow Tai Fook's fixed-price products may rise by 11% to 20%. In comparison, Lao Pu Gold's price increase appears to be the most significant in the industry.

Huafu Securities notes that escalating geopolitical conflicts are expected to drive volatile strength in gold prices, though the sustainability of such conflicts warrants close monitoring. Drawing on historical impacts of geopolitical tensions, rising safe-haven sentiment provides direct upward momentum for gold, with spillover effects to silver and other metals. However, the durability of such trends depends on the intensity and duration of the conflicts. Should conflicts fail to escalate continuously, the impact on precious metal prices would likely be short-term, akin to the scenario observed during the 2025 Iran-Israel conflict.(Viewpoint sourced from Huafu Securities report dated June 14, 2025: "Non-Ferrous Metals Industry: Geopolitical Crisis and Fed Rate Cut Expectations Resonate, Driving Gold Higher").

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