Suddenly, I can't hold on anymore! Gold, massive sell-off

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【Introduction】A-shares opened low and rose high, Turkey’s central bank heavily sold gold.

China Fund Reporter Taylor

Brothers and sisters, it’s time for the weekend blind box opening again. I hope there will be good news from the Middle East in the next two days!

Let’s review today’s market performance together.

A-shares opened low and rose high.

On March 27, the market opened low and rose throughout the day, with all three major indices rising collectively. By the close, the Shanghai Composite Index rose 0.63%, the Shenzhen Component Index rose 1.13%, and the ChiNext Index rose 0.71%.

A total of 4,337 stocks rose in the market, with 93 stocks hitting the daily limit; 1,073 stocks fell.

Pharmaceutical stocks surged significantly, with over ten stocks hitting the daily limit.

Some brokerage analysts stated that recently, Hong Kong-listed innovative drug companies have been intensively disclosing annual reports, and the performance of Pharma+Biotech companies continues to be realized, with performance in a high growth phase; since the beginning of 2026, business development (BD) has been continuously rolling out, with the amount exceeding that of the same period last year, and innovative drugs going overseas clearly creating value.

The innovative drug sector has adjusted significantly since September last year, with a large adjustment range, a long adjustment time, and extremely low liquidity. The price adjustments are accompanied by real industrial progress, accumulating upward strength from downward adjustments.

Some analysts claim that the innovative drug sector has recently shown an overall trend of oscillating upward; on one hand, financial factors are gradually stabilizing and digesting, while on the other hand, since the beginning of the year, whether it’s BD or recent key project data, the logic of enhancing the competitiveness of domestic innovative drugs continues to strengthen.

The lithium battery sector erupted collectively, with Rongjie Co., Ltd. hitting the limit for four consecutive days, and stocks like Jiangte Motor, Shengxin Lithium Energy, and Yongxing Materials also hitting the daily limit. In terms of news, the main contract for lithium carbonate broke through 160,000 yuan/ton, approaching 170,000 yuan/ton. Analysts stated that the recent change lies in the upward trend of the global energy cost center, with expectations that the trend of energy autonomy and control in various countries is accelerating, and the long-term demand growth center for new energy lithium batteries is moving upward.

Chemical stocks were repeatedly active, with Lubec Chemical, Shandong Haihua, and Chitianhua hitting the daily limit.

On the downside, the coal sector adjusted, with Liaoning Energy hitting the limit down.

Turkey reduces gold reserves by $8 billion due to the Iran war.

In the two weeks following the outbreak of the Iran war, the Turkish central bank sold and utilized about 60 tons of gold through swap operations, worth over $8 billion.

According to the latest data released by the Turkish central bank, Turkey’s gold reserves decreased by 6 tons in the week of March 13 and further decreased by 52.4 tons in the week of March 20, indicating a rapid decline in reserves. Some of this was direct sales, but most were through gold swaps for foreign exchange or lira liquidity.

This operation occurred during a time when Turkey’s “de-inflation” strategy was under pressure. This strategy heavily relies on maintaining the stability or mild depreciation of the lira, usually through hard currency interventions by state-owned banks. However, since the outbreak of the conflict, rising energy import costs and a surge in demand for dollars have made it more difficult to maintain this strategy.

Iris Cibre, founder of Istanbul-based Phoenix Consultancy, stated that officials have utilized up to $135 billion of the central bank’s gold reserves through sales and gold swaps to meet liquidity needs and stabilize the domestic market. She estimates that the total selling volume is about 58.4 tons, with more than half completed through overseas “gold-for-currency” swap methods.

There have been previous reports that the Turkish central bank is discussing using gold reserves traded on the London market to cushion the depreciation pressure on the lira caused by the war.

Over the past decade, Turkey has been one of the most aggressive gold buyers globally. This sell-off marks a reversal in Turkey’s policy direction to reduce dependence on dollar assets. As investors have taken profits after significant increases since last year, gold prices have fallen by about 15% this month.

TD Securities commodity strategist Daniel Ghali stated that the economic impact of the Iran war may weaken some central banks’ demand for gold while forcing other central banks to utilize gold reserves to meet dollar-denominated debts.

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Editor: Song Yafang