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[Introduction] US$2,500! International gold prices hit a new high, gold stocks rose across the board! Chinese assets exploded again

China Fund News reporter Guo Wenjun

Good morning, everyone! A lot of big things happened last night and this morning.

The three major U.S. stock indexes closed slightly higher, and the international gold price hit a new high! Gold stocks rose across the board. Bitcoin ETF rose by more than 10%, and well-known Wall Street companies and large institutional investors bought a large amount of Bitcoin ETF in the second quarter. International oil prices fell across the board, and Chinese assets continued to rise.

The three major U.S. stock indexes closed slightly higher

Nasdaq rises for seven consecutive days

On August 17, Eastern Time, the three major U.S. stock indexes closed slightly higher. As of the close, the Dow Jones Industrial Average rose 0.24% to 40,659.76 points; the S&P 500 rose 0.2% to 5,554.25 points; and the Nasdaq rose 0.21% to 17,631.72 points, recording a seventh consecutive day of gains. This week, the Dow Jones Industrial Average rose 2.94%, the S&P 500 rose 3.93%, and the Nasdaq rose 5.29%.

Technology stocks were mixed, with Apple up 0.59%, Amazon down 0.3%, Netflix up 1.64%, Google up 1.03%, Facebook down 1.84%, and Microsoft down 0.61%.

Bank stocks rose collectively, with JPMorgan Chase up 1.15%, Goldman Sachs up 1.05%, Citigroup up 1.45%, Morgan Stanley up 0.78%, Bank of America up 0.78% and Wells Fargo up 1.37%.

International gold price hits a new high!

Gold stocks rose across the board

On August 16, Eastern Time, international gold prices hit a new record high due to multiple factors including a weakening U.S. dollar, expectations of a September rate cut by the Federal Reserve, and geopolitical tensions in the Middle East.Spot gold prices broke through the $2,500 an ounce mark for the first time.

London spot gold rose as much as 2.20% to $2,509.72 an ounce and closed at $2,506.84 an ounce, up 2.08%.

International precious metal futures generally closed higher. COMEX gold futures rose 2.16% to $2,546.2 per ounce, a record high, up 2.94% this week; COMEX silver futures rose 2.35% to $29.085 per ounce, up 5.43% this week.

Gold stocks performed strongly as gold prices hit a record high. Harmony Gold rose 5.23%, Gold Fields rose 3.84%, AngloGold rose 3.55%, Barrick Gold rose 3.49%, Colden Mining rose 3.22%, Kinross Gold rose 2.92%, and Eagle Mining rose 2.47%.

Bitcoin ETF surges

On August 16, Eastern Time, Bitcoin ETF surged. The 2x Bitcoin Strategy ETF rose by 10.23% at one point and closed at $27.868 for the day, up 9.63%.

Well-known Wall Street companies and large institutional investors bought a large number of spot Bitcoin ETFs in the second quarter, indicating that the traditional financial sector is increasingly accepting Bitcoin as an asset class. According to documents submitted to the U.S. Securities and Exchange Commission (SEC), the number of funds holding Bitcoin spot ETFs increased by 701 in the second quarter, bringing the total number of funds holding such ETFs to 1,950.

Goldman Sachs' 13F filing shows that the bank holds positions in seven of the 11 Bitcoin spot ETFs in the United States, with a scale of more than $400 million. In addition, many quantitative hedge funds such as Morgan Stanley, Wells Fargo, Renaissance Technologies, Millennium Management, Capula Investment Management, and Schonfeld Strategic Advisors are also increasing their holdings of Bitcoin ETFs.

In addition, pension funds are also accelerating their entry. The Michigan Pension Fund in the United States bought $6.6 million of Bitcoin spot ETFs in the second quarter.

International oil prices fell across the board

On August 16, Eastern Time, international oil prices fell across the board. The September contract of U.S. crude oil fell 3.21% at one point, and closed down 1.95% at $75.49 per barrel, down 1.76% for the week; the October contract of Brent crude oil fell 1.7% to $79.66 per barrel, flat on a weekly basis.

Goldman Sachs cuts US GDP growth forecast

Goldman Sachs lowered its forecast for the third quarter GDP growth of the United States from 2.6% to 2.4%. Goldman Sachs pointed out that the industrial production in the United States announced earlier in July fell by 0.6% month-on-month, which was larger than the expected decline of 0.1%, mainly reflecting the negative impact of Hurricane Beryl on production in some areas.

Goldman Sachs also said that the third-quarter automobile assembly data was also lower than expected, falling 12.4% to 9.8 million vehicles, the lowest level since October 2023. In addition, business equipment spending fell 0.2% month-on-month, also increasing pressure on GDP.

US consumer confidence index is higher than expected

On the macro level, the preliminary reading of the University of Michigan Consumer Confidence Index in August was 67.8, higher than the expected 66.9 and the final value of 66.4 in July.

Fed official Goolsbee said that when the balance of the labor market begins to shift, it tends to deteriorate quickly; some leading recession indicators are sending warning signals; GDP is still quite strong and there are some strong areas in the economy. He hopes that the job market will stabilize and is worried about further weakness.

Chinese assets continue to rise

Popular Chinese stocks continued to rise generally.Nasdaq China Golden Dragon Index rose 1.92%I-Mab rose 9.09%, JD.com rose 8.48%, and Tuya Smart rose 7.53%, leading the gains of the Nasdaq China Golden Dragon Index.

Li Auto rose 6.93%, Dada Group rose 6.87%, Hillview Metal Mining rose 6.45%, and Alibaba rose 4.54%.

Chinese listed new energy vehicle stocks rose collectively. Except for Li Auto, NIO rose 3% and Xpeng Motors rose 1.32%.

Editor: Captain

Review: Xu Wen