Understanding the Market | Gold Stocks Strengthen in the Afternoon as International Gold Prices Stop Falling and Rebound; Institutions Maintain Optimistic Long-term Outlook on Gold
Gold stocks performed strongly in the afternoon, with TONGGUAN GOLD rising 9.65%, CHIFENG GOLD up 5.39%, and SD GOLD increasing 4.98%. International gold prices rebounded to USD 3,250, up 0.67% during the day. Huatai Futures pointed out that although the Federal Reserve is temporarily maintaining its policy, other central banks are cutting interest rates, leading to a recovery in market risk sentiment. Gold is experiencing short-term fluctuations, but the long-term outlook is optimistic. China International Capital Corporation (CICC) expects the reasonable central price of gold to be higher than the annual forecast due to uncertainties in U.S. economic policy and geopolitical influences
According to Zhitong Finance APP, gold stocks surged in the afternoon. As of the time of publication, Tongguan Gold (00340) rose by 9.65%, trading at HKD 1.25; Chifeng Gold (06693) increased by 5.39%, trading at HKD 25.4; Shandong Gold (01787) rose by 4.98%, trading at HKD 23.2; Lingbao Gold (03330) increased by 4.65%, trading at HKD 8.77; and Zhaojin Mining (01818) rose by 3.22%, trading at HKD 17.96.
In terms of news, on May 13, international gold prices stopped falling and rebounded, with spot gold reaching USD 3,250, up 0.67% for the day. Huatai Futures believes that the Federal Reserve is currently taking a wait-and-see approach, while other central banks are still taking actions to cut interest rates. Additionally, the UK and the US have reached a trade agreement, and the China-US dispute has clearly eased, leading to a recovery in market risk sentiment, with US stocks and the US dollar performing relatively strongly recently. Therefore, gold may temporarily present a volatile pattern. However, in the long term, the outlook remains optimistic. Furthermore, the market is currently focused on the US April CPI data to be released tonight.
CICC pointed out that looking ahead to this year, the bank believes that the reasonable central price of gold may be higher than the forecast in the annual outlook, mainly based on the following two considerations: First, the uncertainty of US macroeconomic policy may still bring adverse effects on economic growth, coupled with increased tariffs that could raise inflation concerns and limit the Federal Reserve's interest rate cut decisions. The pressure of economic slowdown in the US and the inflation central may be higher than the bank's previous expectations. Second, the uncertainty of the Trump administration's policies may further strengthen the demand for diversification of asset portfolios under de-globalization, combined with rising geopolitical uncertainties, which may support the demand for physical allocation of precious metal assets by governments and the private sector
