Understanding the Market | Gold stocks fell in early trading as global central bank gold purchases slowed, institutions say the upward momentum for gold prices in the short term has weakened
Gold stocks fell in early trading. As of the time of writing, CHIFENG GOLD dropped 4.92% to HKD 25.52; SD GOLD fell 4.5% to HKD 28.46; CHINAGOLDINTL decreased 3.15% to HKD 73.9; and ZIJIN MINING declined 0.69% to HKD 22.9. On the news front, on August 7, data from the People's Bank of China showed that gold reserves reached 73.96 million ounces at the end of July, an increase of 60,000 ounces month-on-month, marking nine consecutive months of accumulation. Data released by the World Gold Council indicated that in June 2025, global official gold reserves increased by 22 tons, marking a slight month-on-month rise for the third consecutive month. In the first half of 2025, global central banks net purchased 123 tons of gold, a slight decrease compared to the same period in 2024. In early August, China Merchants Securities released a research report stating that the short-term upward momentum for gold prices is weakening. Although gold has allocation value, the upward momentum is insufficient in the short term, and there is a need to be wary of localized overheating risks. The institution suggests that investors focus on structural opportunities rather than making a broad bet on rising gold prices. Dongzheng Futures pointed out that market expectations for future Federal Reserve interest rate cuts have increased, but this has also been largely reflected in gold prices
According to the Zhitong Finance APP, gold stocks fell in early trading. As of the time of publication, CHIFENG GOLD (06693) was down 4.92%, trading at HKD 25.52; SD GOLD (01787) was down 4.5%, trading at HKD 28.46; CHINAGOLDINTL (02099) was down 3.15%, trading at HKD 73.9; ZIJIN MINING (02899) was down 0.69%, trading at HKD 22.9.
In terms of news, on August 7, data from the People's Bank of China showed that gold reserves reached 73.96 million ounces at the end of July, an increase of 60,000 ounces month-on-month, marking nine consecutive months of accumulation. Data released by the World Gold Council indicated that by June 2025, global official gold reserves had net increased by 22 tons, marking a slight month-on-month rise for the third consecutive month. In the first half of 2025, global central banks net purchased 123 tons of gold, a slight decrease compared to the same period in 2024.
CITIC Securities released a research report in early August stating that the upward momentum for gold prices in the short term is weakening. Although gold has allocation value, the upward momentum is insufficient in the short term, and there is a need to be wary of localized overheating risks. The institution advises investors to focus on structural opportunities rather than making a broad bet on rising gold prices. Dongzheng Futures pointed out that market expectations for future Federal Reserve interest rate cuts have increased, but this has also been largely reflected in gold prices
