Iran plans to close the Hormuz Strait, highlighting the value of gold ETF allocation.

On June 23, the gold ETF rose by 0.38% to a new price of 7.464 yuan. The turnover rate was 4.56%, with active trading and a transaction amount of 2.75 billion yuan. The latest fund size of the Huaxin Gold ETF has exceeded 60 billion yuan, continuously favored by funds, firmly holding the title of the largest gold ETF in Asia. On the news front, the geopolitical conflict in the Middle East has escalated, with Israel and Iran launching air strikes on each other intensifying. On June 22, US President Trump declared that the US military would "completely eliminate" three nuclear facilities in Iran, while the Iranian parliament threatened to close the Strait of Hormuz, through which about one-third of global oil trade passes. If the strait is closed, it will impact global commodities and financial markets. Despite some economies showing resilience, the outlook for global economic growth remains uncertain, with concerns about recession or stagflation continuing to support gold prices. China Post Securities research reports that while gold has already seen significant gains by 2025, this round of increases is not yet over. The driving factors are the US government's deficit rate and the demand for US bonds in a backdrop of deglobalization. Huaxin Securities believes that the intensification of the conflict between Iran and Israel will boost safe-haven demand in the short term, driving up gold and oil prices. However, historical experience shows that geopolitical conflicts are only short-term catalysts for gold prices, with the main long-term factors being real interest rates and global uncertainty. From this perspective, the long-term upward trend in gold remains unchanged. Investors can participate in investment through staggered distribution or regular investment strategies using the Huaxin Gold ETF and its related funds.