Understanding the Market | Gold stocks opened higher collectively as risk aversion and interest rate cut expectations resonate, with international gold prices hitting a new historical high
Gold stocks opened higher collectively, with TONGGUAN GOLD rising 5.24%, CHIFENG GOLD rising 5.08%, and ZHAOJIN MINING rising 4.4%. Influenced by risk aversion and expectations of interest rate cuts by the Federal Reserve, international gold prices have reached a new historical high, with New York futures gold surpassing $3,600 per ounce. The market is focused on the upcoming non-farm payroll data, and Morgan Stanley has set a year-end target price for gold at $3,800 per ounce, emphasizing the negative correlation between gold and the US dollar
According to Zhitong Finance APP, gold stocks opened higher collectively. As of the time of publication, TONGGUAN GOLD (00340) rose by 5.24%, trading at HKD 2.41; CHIFENG GOLD (06693) rose by 5.08%, trading at HKD 29.4; ZHAOJIN MINING (01818) rose by 4.4%, trading at HKD 28; China Gold International (02099) rose by 4.19%, trading at HKD 129.3; Shandong Gold (01787) rose by 3.63%, trading at HKD 32; Lingbao Gold (03330) rose by 3.53%, trading at HKD 16.15.
On the news front, benefiting from risk aversion and increasing market bets on the Federal Reserve's interest rate cuts, international gold prices have reached a new historical high, with New York futures gold surpassing USD 3,600 per ounce; spot gold has risen for six consecutive days, briefly breaking through the USD 3,540 mark. It is reported that the weak U.S. economic data released last night, along with further unfavorable evidence against Federal Reserve Governor Cook, has led the market to increase expectations for subsequent monetary policy easing by the Fed, supporting precious metal prices.
Currently, the market is awaiting the non-farm payroll data to be released on Friday, which is the last non-farm data before the Federal Reserve's interest rate meeting in September and is expected to have a key impact on the interest rate cut in September. In addition, Morgan Stanley's latest report has set the year-end target price for gold at USD 3,800 per ounce. The report particularly emphasizes that the strong negative correlation between gold and the U.S. dollar remains a key pricing logic. If the current U.S. dollar index continues to depreciate, it will directly benefit precious metals priced in dollars
