Multiple LOF funds have suspended large purchases, industry insiders analyze: to prevent harm to investors.

On the evening of January 30th, a number of bulk commodity LOF funds, including gold and crude oil, announced large purchase restrictions, with some products even limiting daily purchases to as low as 2 yuan. Industry insiders analyze that during a market downturn, these funds may become the focus due to their themes or strategies, attracting a large amount of short-term bottom fishing or speculative funds. However, the underlying assets of these funds are restricted QDII products, making it difficult to increase investments. If funds continue to flow in and exceed the limits, the excess funds can only be left idle as cash, causing the fund's net asset value to deviate from the index and harm the interests of investors. Regarding the high drop in gold, silver, and stock prices on January 30th, some mutual fund analysts believe that given the current overheated market, short-term market speculation will be intense and volatility will increase marginally. It is necessary to be vigilant about the risk of significant price declines in the short term. However, with the rise in demand for safe-haven assets, as well as the long-term structural supply-demand gap in global strategic asset reserves, the long-term potential for growth in related base metals remains.