NewTimeSpace News: On March 12, during Asian trading hours, gold prices fell for a second consecutive day as U.S. inflation data dampened prospects for rate cuts, while the Middle East war drove oil prices higher.E Fund Gold Miners Select Index ETF(02824.HK) fell nearly 3% in afternoon trading.

Following a 0.3% decline in the previous session, spot gold dropped as much as 1%. Although U.S. core inflation appeared moderate at the beginning of the year, concerns about future inflation have reduced the likelihood of Federal Reserve rate cuts. Meanwhile, the EU warned that its inflation could exceed 3% this year.

Hong Kong Exchanges data shows thatE Fund Gold Miners Select Index ETF(02824.HK) tracks the Solactive Global Gold Mining Select Index, covering gold mining companies listed on the Hong Kong Stock Exchange that are eligible for Stock Connect, currently comprising Zijin Mining, Zhaojin Mining, Shandong Gold, Chifeng Gold, Lingbao Gold and other Chinese mining leaders.

The fund targets global gold mining equity assets, offering both commodity exposure and equity earnings leverage. Against the backdrop of gold prices hitting historic highs, the high-beta characteristics of these "miners" are particularly noteworthy.

Bas Kooijman, CEO and asset manager at HF Capital, stated that the surge in oil prices has driven up inflation expectations and pushed up U.S. Treasury yields, which could continue to weigh on gold. He noted that persistent inflation may reduce expectations for Federal Reserve rate cuts, with current forecasts indicating only one rate cut later this year. Rising Treasury yields tend to diminish the appeal of non-interest-bearing precious metals.

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