Understanding the Market | Gold Stocks Active as US Non-Farm Data Triggers Rate Cut Expectations; Central Bank Increases Gold Holdings for the 10th Consecutive Month
Gold stocks are collectively active. As of the time of writing, CHIFENG GOLD rose 3.75% to HKD 29.34; TONGGUAN GOLD rose 2.7% to HKD 2.24; LINGBAO GOLD rose 3.51% to HKD 16.52; SD GOLD rose 2.25% to HKD 33.56. In terms of news, last Friday, spot gold strongly broke through the USD 3,600 per ounce mark, setting a new historical record and recording the largest weekly increase since mid-June. The U.S. non-farm payroll data for August showed an increase of only 22,000 jobs, far below the market expectation of 75,000, with the unemployment rate rising to 4.3%, the highest level since 2021. The weak non-farm payroll data reinforced expectations for a rate cut by the Federal Reserve. Interest rate swaps indicate that traders expect a 96% probability of a 25 basis point rate cut by the Federal Reserve at the September meeting. Additionally, data released by the People's Bank of China on September 7 showed that China's gold reserves at the end of August were 74.02 million ounces, an increase of 60,000 ounces from 73.96 million ounces at the end of July, marking the 10th consecutive month of gold accumulation
According to Zhitong Finance APP, gold stocks are collectively active. As of the time of publication, CHIFENG GOLD (06693) rose 3.75% to HKD 29.34; TONGGUAN GOLD (00340) rose 2.7% to HKD 2.24; LINGBAO GOLD (03330) rose 3.51% to HKD 16.52; SD GOLD (01787) rose 2.25% to HKD 33.56.
In terms of news, last Friday, spot gold strongly broke through the USD 3,600 per ounce mark, setting a new historical record and recording the largest weekly increase since mid-June. The U.S. non-farm payroll data for August showed an increase of only 22,000 jobs, far below the market expectation of 75,000, with the unemployment rate rising to 4.3%, the highest level since 2021. Weak non-farm employment data reinforced expectations for a Federal Reserve interest rate cut. Interest rate swaps indicate that traders expect a 96% probability of a 25 basis point rate cut by the Federal Reserve at the September meeting. Additionally, data released by the People's Bank of China on September 7 showed that China's gold reserves at the end of August were 74.02 million ounces, an increase of 60,000 ounces from 73.96 million ounces at the end of July, marking the 10th consecutive month of gold accumulation
