Understanding the Market | Gold stocks collectively weakened, WanGuo Gold Group fell over 5%, gold prices plummeted below the $3,300 mark
Gold stocks generally fell, with the International Gold Group dropping over 5%, and spot gold prices falling below USD 3,300 per ounce. CITIC Futures analysis believes that gold prices lack upward momentum in the short term, but remain optimistic about gold in the medium to long term, due to expectations of stagflation in the U.S. economy and the Federal Reserve's potential to not cut interest rates, which may increase recession risks. The market needs to pay attention to China-U.S. trade negotiations and Trump's policy direction
According to Zhitong Finance APP, gold stocks collectively weakened. As of the time of publication, the International Gold Group (03939) fell by 5.3% to HKD 21.45; Chifeng Jilong Gold Mining (06693) fell by 4.41% to HKD 27.1; Lingbao Gold (03330) fell by 1.86% to HKD 8.98; China National Gold International (02099) fell by 0.98% to HKD 50.3.
In terms of news, on the afternoon of April 25, spot gold suddenly plummeted, breaking below USD 3,300 per ounce, with a daily decline of 1.47%. As of the time of publication, it was reported at USD 3,298.27 per ounce. According to CCTV News, on April 24 local time, U.S. CBS reported that Russian Foreign Minister Sergey Lavrov stated that the Kremlin is "ready to reach an agreement with the United States on the Ukraine issue," but he also mentioned that some of the content is subject to "fine-tuning."
CITIC Futures believes that in the short term, there is a high call from the U.S. side for trade negotiations, market risk appetite is recovering, and Trump is pressuring the Federal Reserve to slow down, thus the independence of the Federal Reserve is temporarily maintained. Gold prices may lack upward momentum in the short term, while the medium to long-term bullish trend remains unchanged. The price adjustment space is also limited. In the short term, gold prices are expected to mainly fluctuate and consolidate, with continuous attention to the progress of China-U.S. trade negotiations and Trump's policy direction. The medium to long-term bullish view remains unchanged, as the expectation of U.S. stagflation and the increased probability of recession if the Federal Reserve continues not to cut interest rates are the logic that is bullish for gold in the medium term, while the ongoing cycle of dollar credit contraction is the core support for gold in the long term
