Understanding the Market | Gold stocks decline again as international gold prices continue to fall, CHI SILVER GP drops over 14%
Gold stocks fell again, with CHI SILVER GP down 14.58%, EVEREST GOLD down 11.23%, and CHINAGOLDINTL down 1.58%. International gold prices continued to decline, with spot gold falling below $3,350 per ounce, and COMEX gold futures main contract reported at $3,366.70 per ounce. Citigroup expects gold prices to peak in the third quarter and gradually decline, reaching $2,500 to $2,700 per ounce by the second half of 2026. The Federal Reserve kept interest rates unchanged, and analysts believe the medium to long-term trend for gold remains unchanged, while short-term influences are affected by geopolitical situations and policies
According to Zhitong Finance APP, gold stocks have once again declined. As of the time of writing, CHI SILVER GP (00815) fell by 14.58% to HKD 0.41; EVEREST GOLD (01815) fell by 11.23% to HKD 1.66; CHINAGOLDINTL (02099) fell by 1.58% to HKD 68.65; Chifeng Jilong Gold Mining (06693) fell by 3.24% to HKD 28.35; and Shandong Gold (01787) fell by 2.74% to HKD 26.65.
On the news front, international gold prices have continued to decline for four consecutive days since June 16. As of June 20, spot gold prices fell below the USD 3,350 per ounce mark during trading; COMEX gold futures were reported at USD 3,366.70 per ounce, down 1.21% for the day. Citigroup pointed out that gold prices are expected to peak in the third quarter of this year (USD 3,100—3,500 per ounce) before gradually retreating. It is anticipated that by the second half of 2026, gold prices will fall back to the range of USD 2,500—2,700 per ounce, representing a decline of about 20%—25% from current forward prices, marking the end of this record-breaking rally.
It is noteworthy that on June 18, local time, the Federal Reserve decided to keep the federal funds rate target range unchanged at 4.25% to 4.50%. This marks the fourth consecutive decision by the Federal Reserve's monetary policy meeting to maintain interest rates. CITIC Futures analysts believe that the medium to long-term bullish trend for gold remains unchanged, while short-term influences are affected by geopolitical situations and Federal Reserve policies. The main supporting factors for the medium to long-term outlook include ongoing trade frictions, rising expectations for Federal Reserve interest rate cuts, and a contraction in U.S. dollar credit. Although recent signs of easing geopolitical conflicts have led to a pullback in gold prices, the macroeconomic fundamentals still provide support for gold
