Understanding the Market | Gold stocks collectively decline, LINGBAO GOLD falls over 5%, ZIJIN MINING falls over 4%
Gold stocks collectively fell, with LINGBAO GOLD down over 5% and ZIJIN MINING down over 4%. After reaching a historical high, gold prices have retreated, with spot gold reported at $3,031 per ounce. CITIC Futures pointed out that the slight strengthening of the dollar has created short-term pressure on gold prices, but expectations of a Federal Reserve interest rate cut have limited the appreciation potential of the dollar. Dongfang Jincheng predicts that gold prices may face phase adjustment pressure, but demand for safe-haven assets will continue to support gold prices
According to Zhitong Finance APP, gold stocks collectively fell. As of the time of publication, LINGBAO GOLD (03330) dropped 5.18%, trading at HKD 5.86; ZIJIN MINING (02899) fell 4.62%, trading at HKD 17.34; Shandong Gold (01787) decreased by 3.53%, trading at HKD 17.48; China Gold International (02099) declined 3.4%, trading at HKD 52.22.
In terms of news, gold prices have retreated after reaching a historical high. As of the time of publication, spot gold is quoted at USD 3,031 per ounce. CITIC Futures stated that the US dollar strengthened slightly during European trading hours, putting short-term pressure on gold prices. However, market expectations for a Federal Reserve interest rate cut this year limited further appreciation of the dollar. At the same time, uncertainties surrounding Trump's trade policies and tensions in the Middle East provide support for gold, and short sellers need to respond cautiously.
Bai Xue, Senior Vice President of the Research and Development Department at Dongfang Jincheng, predicts that after gold prices break through the key level of USD 3,000 per ounce, some funds may have profit-taking demands. Additionally, the US stock market shows signs of a rebound from oversold conditions, which may somewhat restrict the willingness of funds to flow into gold. In the short term, gold prices may face periodic adjustment pressure. Until the US tariff policy is implemented, uncertainties in the economic and trade situation will continue to ferment, coupled with the normalization of geopolitical risk, the strong demand for safe-haven assets will still provide strong support for gold prices