Understanding the Market | LINGBAO GOLD fell over 5%, leading the decline in gold stocks. Multiple factors are putting pressure on gold, and the gold price has fallen below the $2,900 mark
LINGBAO GOLD fell over 5%, leading the decline among gold stocks, as international gold prices fell below USD 2,900, currently reported at USD 2,874 per ounce. Market analysis suggests that the drop in gold prices is influenced by the Federal Reserve's hawkish signals and the easing of geopolitical tensions. Industrial and Commercial Bank of China report indicates that short-term liquidity issues still exist, and market volatility may increase. Dongfang Jincheng expects intensified fluctuations in gold prices by 2025, but still with an upward trend, potentially reaching USD 3,000 per ounce
According to Zhitong Finance APP, gold stocks generally fell. As of the time of publication, Lingbao Gold (03330) dropped 5.2%, trading at HKD 5.1; Zijin Mining (02899) fell 2.51%, trading at HKD 14.78; China National Gold International (02099) decreased by 2.27%, trading at HKD 43.05; China Silver Group (00815) declined 1.72%, trading at HKD 0.285.
On the news front, on February 27, international gold prices turned downward. As of the time of publication, spot gold fell below the USD 2900 mark, trading at USD 2874 per ounce. Market analysis indicates that the decline in gold prices may be due to the pressure from the Federal Reserve's hawkish signals and signs of easing geopolitical tensions, significantly cooling market risk aversion. The precious metals report released by Industrial and Commercial Bank of China analyzes that, from the perspective of the gold market, liquidity issues for short-term spot gold still exist. Before the details of various trade tariffs are fully implemented, there is still room for market fluctuations to rise, and policy uncertainty remains a major factor affecting the market.
Qu Rui, Deputy Director of the Research and Development Department at Dongfang Jincheng, stated that compared to the continuously rising market in 2024, gold prices will be more volatile in 2025, but still on an upward trend, with the potential to reach USD 3000 per ounce this year. If the Trump administration's policies on tariffs and immigration lead to a significant rebound in U.S. inflation, it will constrain the Federal Reserve's space for interest rate cuts this year, and may even lead to an early end to the rate-cutting cycle, which could put pressure on gold prices