China sees standard flow to golden boxes amid trading tension

Chinese investors pumped a record amount in the gold investment funds last week, powered by their desire to use a safe haven in light of the increasing escalation in hostility between the two largest economies in the world, shaking world markets. According to the “Bloomberg” accounts, the flow was recorded on four main golden boxes within the Chinese market, including the “Hayn Yivu” Gold Fund, a record level of 7.6 billion yuan (equivalent to one billion US dollar) this past week, with this strong flow this week. This jump came after the sharp customs duties were announced by US President Donald Trump in the eradication of trillions of dollars from the global stock markets, and the fear of fuel investors for the global economy entering a recession. On the other hand, China promised to ‘fight to the end’, after Trump threatened to impose extra fees with 50% on Chinese goods unless Beijing withdrew his previous retaliation against US fees. A tool for decorating and hedging has traditionally bought gold in China for decorative purposes because of its cultural importance, but investors are increasingly preferring it as a tool to hedge of uncertainty. Two important suppliers of the traded investment funds said they were not disclosed that their identity was not disclosed, that the vast majority of the last flow of individual investors came. Although Chinese gold funds are still small compared to their global peers, the frequency of demand is increasing significantly. The additions since the beginning of the year have reached the equivalent of four fifths registered over the past year. “If this trend continues, the Chinese gold boxes may start to compete with its peers in the advanced markets in terms of influence,” says Michael Shit, a precious metal analyst at Deutsche Bank. A strong highwing was witness to a strong highwing this year driven by the escalation of commercial and geopolitical tensions as it recorded successive standards, and attracted investments from the revamped indicators to the central banks. Despite the slight decline recently due to a global sales wave to cover losses in other markets, the price of gold has been by more than 13% high since the beginning of the year, according to the sector estimates, and there is still room for further climbing. “When a state of overall (economic and political) prevails ambiguity, the money is on its way to gold and effects to avoid risks,” says Yu Yingdong, general manager of Chentine Coin Asset Management. He added that this trend “partially spent the money that could have gone to the shares.” According to data collected by “Bloomberg”, the traded Chinese equity funds were an outflow of about 5.3 billion yuan during the month of March.