Media365
Another gold fund in mainland China suspended new investments as precious metals extended a plunge on Monday, heightening dilemmas for investors.
The Harvest Gold Securities Investment Fund, a listed open-ended fund (LOF) investing in gold-related products, said it would suspend new investments from Tuesday until further notice. The fund manager said it aimed to ensure stable operation and protect the interests of unit holders.
The silver fund, UBS SDIC Silver Futures Fund LOF, plunged 10 per cent upon resumption of trading on Monday morning.
Shanghai silver futures dropped 17 per cent to 24,832 yuan (US$3,572) per kilogram on Monday, while gold futures declined more than 15 per cent.
A global rout on Friday saw silver plunge 26 per cent and gold drop 9 per cent “immediately” after US President Donald Trump nominated as Fed chairman Kevin Warsh, who recently advocated for lower policy rates, according to Brian Levitt, chief global market strategist at Invesco. The announcement helped strengthen the US dollar.
