--- title: "The Wind Has Changed! Banks Lower Expected Interest Rates on Structured Deposits, Wealth Management Institutions Reduce Gold ETF Holdings" type: "News" locale: "en" url: "https://longbridge.com/en/news/289249228.md" description: "Affected by the volatile decline in gold prices and expectations regarding Federal Reserve policy, investment sentiment has shifted. Several banks have lowered the expected interest rates on structured deposits linked to gold prices, while some wealth management institutions, such as those affiliated with major state-owned banks, have begun reducing their holdings of gold ETFs, retaining only core strategic positions. Market enthusiasm has shifted from the \"hard-to-get\" gold frenzy at the beginning of the year to shrinking returns, and investors need to pay attention to subsequent macroeconomic policy adjustments" datetime: "2026-06-10T00:04:09.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/289249228.md) - [en](https://longbridge.com/en/news/289249228.md) - [zh-HK](https://longbridge.com/zh-HK/news/289249228.md) --- # The Wind Has Changed! Banks Lower Expected Interest Rates on Structured Deposits, Wealth Management Institutions Reduce Gold ETF Holdings "We have already reduced our holdings of gold ETFs and currently retain some core strategic positions. Gold prices are currently influenced by multiple factors, including Federal Reserve policy. In the short term, we are focusing on the remarks of the new Fed Chair, Kevin Warsh, at the FOMC meeting to determine our subsequent adjustment strategy." On June 9, a representative from a wealth management subsidiary of a major state-owned bank told a reporter from China Securities Journal. Gold, the star asset of the past two years, is being quietly de-risked by some financial institutions. In less than half a year, the investment sentiment surrounding gold has undergone a dramatic reversal, shifting from the "hard-to-get" gold frenzy at the beginning of the year to shrinking returns today. The reporter noted that several banks have lowered the expected interest rates on structured deposit products linked to gold prices. Meanwhile, investment managers at some wealth management institutions have begun reducing their holdings of gold ETFs. ## Market Enthusiasm Wanes Since 2026, gold prices have experienced a typical "roller coaster" trajectory. Wind data shows that after COMEX gold futures prices surged in January this year, they began to fluctuate and decline. When gold prices were rising, bank structured deposits linked to gold prices became market hits, with some products selling out shortly after launch. "In January, gold prices continued to rise, and I had a deposit maturing at that time. Considering the low interest rates on ordinary deposits, I purchased a structured deposit linked to gold prices," said Mr. Wu, a resident of Beijing, to the reporter. At the beginning of the year, many investors shared Mr. Wu's view, favoring structured deposits linked to gold prices for their principal protection and slightly higher yields compared to fixed-term deposits of similar duration, and flocked to buy these products. For example, the "Dianjin Series Aggressive Bullish Three-Tier Range Three-Month Structured Deposit" launched by China Merchants Bank in January has a term of 91 days and a minimum deposit of RMB 10,000. Depending on the linked gold price fluctuations, the product offers three tiers of estimated annualized yields at maturity: 1.0%, 1.58%, and 1.78%. The bank's three-month featured deposit "Xiang Dingcun" has an annualized yield of 1.0% with a minimum deposit of RMB 1,000; the three-month lump-sum fixed deposit has an annualized yield of 0.65% with a minimum deposit of RMB 50. Now, against the backdrop of falling gold prices, several banks have lowered the estimated annualized yields at maturity for structured deposit products linked to gold prices. For instance, for the "Dianjin Series Aggressive Bullish Three-Tier Range 91-Day Structured Deposit" launched by China Merchants Bank in June, the three tiers of estimated annualized yields at maturity, corresponding to linked gold price fluctuations, are 1.0%, 1.43%, and 1.63%, respectively. The estimated annualized yield for the highest tier has been reduced by more than 10 basis points compared to the previous offering. ## Wealth Management Institutions Adopt a Cautious Stance In addition to structured deposits linked to gold prices, many wealth management companies previously capitalized on the gold investment boom by launching "Gold+" wealth management products, which quickly became stars in the wealth management market. "Gold+" wealth management products are mainly divided into two categories: structured and non-structured products. The performance of non-structured products is more directly affected by gold prices, and these products often allocate assets such as gold ETFs and gold stock ETFs. Structured products, on the other hand, mostly indirectly allocate gold assets through derivatives such as options. With reasonable position control, fixed income from coupons on core positions can mitigate the impact of falling gold prices on the product's net asset value. Amidst gold price volatility, representatives from more than one wealth management company told the reporter that their attitude towards gold-related assets has become increasingly cautious. "'Gold+' wealth management products were quite popular in 2025, and distribution channels also reported increased demand for such products. However, wealth management companies are now relatively cautious, mainly due to the trend in gold prices," said a representative from a wealth management subsidiary of a city commercial bank. "Positions have already been reduced." Representatives from several wealth management companies revealed to the reporter that they have reduced holdings of assets such as gold ETFs and gold stock ETFs in related strategy products. ## Central Bank Gold Purchases Support Prices Notably, amidst gold price fluctuations, central banks around the world have not stopped allocating gold. A recent report released by the European Central Bank shows that as of the end of 2025, the share of gold in global official reserve assets rose to 27%, surpassing the 22% share of US Treasury bonds. Gold has surpassed US Treasuries to become the largest asset in global official reserves. In fact, since 2024, investor allocation to gold has begun to increase, and central bank gold purchases have further strengthened the market's bullish expectations for gold prices. The resonance among institutional investors, individual investors, and central bank gold purchases has pushed gold prices into a bull market. At the same time, volatility in the gold market has also amplified. Looking ahead, industry insiders believe that central bank gold purchases will continue to support gold prices, but the trend of the US dollar, US Treasury yields, inflationary pressures, geopolitical risks, and changes in investment demand will jointly determine the next phase of gold price movements. Nikhil Mehra, Head of Asia Pacific for Multi-Asset Strategies and Solutions at BlackRock, stated at the recent BlackRock China Five-Year Anniversary Theme Forum: "Our portfolios typically have a 2% to 5% allocation to gold. We engage in both strategic allocation and small-scale tactical timing operations. We remain bullish on the value of gold in diversifying portfolio risk." Risk Warning and Disclaimer The market involves risks, and investment should be approached with caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. 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