Understanding the Market | Gold stocks continue recent upward trend, international gold prices hit a new historical high, and the performance of the precious metals sector in the first half of the year is impressive
Gold stocks continue to rise, with CHIFENG GOLD up 8.81%, LINGBAO GOLD up 5.13%, SD GOLD up 5.02%, and ZHAOJIN MINING up 3.71%. On September 8, the London spot gold price hit a historic high, reaching a maximum of $3,635 per ounce. This year, spot gold has accumulated an increase of $1,000 per ounce, a rise of 38%. A report from Dongguan Securities shows that the precious metals sector's operating income in the first half of the year was 188.253 billion yuan, a year-on-year increase of 27.15%; net profit was 9.682 billion yuan, a year-on-year increase of 64.71%. CITIC Construction Investment believes that global liquidity will support gold prices and expects that the Federal Reserve's interest rate cuts will further impact gold prices
According to Zhitong Finance APP, gold stocks continue their recent upward trend. As of the time of publication, CHIFENG GOLD (06693) rose by 8.81%, trading at HKD 32.6; LINGBAO GOLD (03330) increased by 5.13%, trading at HKD 17; SD GOLD (01787) went up by 5.02%, trading at HKD 34.72; and ZHAOJIN MINING (01818) rose by 3.71%, trading at HKD 29.1.
In terms of news, on September 8, London spot gold surpassed USD 3,600 per ounce, reaching a peak of USD 3,635 per ounce, setting a new historical high. Since the beginning of this year, spot gold has cumulatively surged by USD 1,000 per ounce, with an annual increase of 38%. Dongguan Securities stated that the precious metals sector performed impressively in the first half of the year, with operating revenue of CNY 188.253 billion, a year-on-year increase of 27.15%; the net profit attributable to the parent company reached CNY 9.682 billion, a year-on-year increase of 64.71%.
CITIC Construction Investment released a research report stating that in the medium term, global liquidity provides certain support for gold prices. This round of global interest rate cuts has seen non-U.S. central banks cut rates ahead of the Federal Reserve, with the global liquidity spillover effect boosting gold. Recently, U.S. inflation data has fallen short of expectations, and the impact of tariffs on inflation pressure may not be as significant as the market anticipated. Based on current inflation forecasting indicators, it is expected that U.S. inflation risks will be controllable this year. There is still room for the Federal Reserve to cut rates, and recently, Federal Reserve officials Waller and Bowman expressed support for a potential rate cut as early as July. Some central banks will follow the Federal Reserve in cutting rates, so the global rate-cutting wave has not yet ended, providing medium-term support for gold prices
