Understanding the Market | Gold stocks collectively opened lower, strong non-farm data puts pressure on gold, institutions remain optimistic about mid-term gold price increase
Gold stocks opened lower collectively, with LINGBAO GOLD down 4.03%, CHIFENG GOLD down 3.46%, CHINAGOLDINTL down 1.66%, and SD GOLD down 1%. The U.S. unemployment rate for May was 4.2%, with non-farm payrolls increasing by 139,000, both in line with market expectations, putting pressure on gold. Analysts believe the data suggests the Federal Reserve will maintain the status quo, which is unfavorable for gold in the short term. However, Galaxy Securities pointed out that the tariff policy will increase market uncertainty, potentially driving gold prices up in the medium term
According to Zhitong Finance APP, gold stocks opened lower collectively. As of the time of publication, Lingbao Gold (03330) fell by 4.03%, trading at HKD 11.9; Chifeng Gold (06693) dropped by 3.46%, trading at HKD 27.9; China Gold International (02099) decreased by 1.66%, trading at HKD 68; and Shandong Gold (01787) fell by 1%, trading at HKD 24.8.
In terms of news, the U.S. unemployment rate for May, released on Friday, stood at 4.2%, in line with market expectations, with the previous value also at 4.2%; the seasonally adjusted non-farm payrolls for May recorded an increase of 139,000, exceeding the market expectation of 130,000, while the previous value was 147,000. Marex analyst Edward Meir stated that the data met expectations, which is a negative factor for gold, as it suggests that the Federal Reserve will remain on hold for a while.
Galaxy Securities previously stated that the U.S. re-escalation of tariff policies will suppress market risk appetite and economic recovery expectations, which is favorable for the rise in gold prices. Galaxy Securities believes that the tariff increase is a core policy of the Trump 2.0 era, and during the negotiations for tariff extensions with multiple countries, Trump's tariff policies may continue to fluctuate, with the core demand for tariff increases persisting. This will lead to increased uncertainty in U.S. policies and a rise in market risk aversion, triggering inflows into global gold ETF funds and driving a mid-term increase in gold prices
