Understanding the Market | Gold Stocks Continue to Rise, Lingbao Gold Up Over 8%, Goldman Sachs Raises Long-Term Gold Price Expectations
Gold stocks continue to rise. As of the time of writing, LINGBAO GOLD is up 8.19%, trading at HKD 18.37; TONGGUAN GOLD is up 4.98%, trading at HKD 2.32; CHINAGOLDINTL is up 3.6%, trading at HKD 138.1; ZHAOJIN MINING is up 3.27%, trading at HKD 29.7. On the news front, the U.S. CPI for August released last night rose 2.9% year-on-year and 0.4% month-on-month; the core CPI increased 3.1% year-on-year and 0.3% month-on-month, all in line with previous values. Following the CPI announcement, the market quickly adjusted its interest rate cut expectations, with traders betting that the probability of the Federal Reserve cutting rates by 75 basis points before the end of the year is close to 90%, and there is a possibility of a 50 basis point cut in September. Notably, since the beginning of the year, international spot gold prices have continued to rise, with an increase of 40% year-to-date. Goldman Sachs has raised its long-term gold price forecast (for 2029 and beyond) to USD 3,300 per ounce, up from the previous forecast of USD 2,850 per ounce. Goldman Sachs stated that its global commodities team "remains bullish on gold" and pointed out that by mid-2026, gold prices are expected to rise to USD 4,000 per ounce, with extreme scenarios not ruling out a near approach to the USD 5,000 mark
According to Zhitong Finance APP, gold stocks continue to rise. As of the time of publication, Lingbao Gold (03330) is up 8.19%, trading at HKD 18.37; Tongguan Gold (00340) is up 4.98%, trading at HKD 2.32; China Gold International (02099) is up 3.6%, trading at HKD 138.1; Zhaojin Mining (01818) is up 3.27%, trading at HKD 29.7.
In terms of news, the U.S. CPI for August, released last night, rose 2.9% year-on-year and 0.4% month-on-month; the core CPI increased by 3.1% year-on-year and 0.3% month-on-month, remaining unchanged from previous values. Following the CPI announcement, the market quickly adjusted its interest rate cut expectations, with traders betting that the probability of the Federal Reserve cutting rates by 75 basis points before the end of the year is close to 90%, and there is a possibility of a 50 basis point cut in September. Notably, since the beginning of the year, the international spot gold price has continued to rise, with an increase of 40% this year. Goldman Sachs has raised its long-term gold price forecast (for 2029 and beyond) to USD 3,300 per ounce, up from the previous forecast of USD 2,850 per ounce. Goldman Sachs stated that its global commodities team "remains optimistic about gold" and pointed out that by mid-2026, gold prices are expected to rise to USD 4,000 per ounce, with extreme scenarios not ruling out approaching the USD 5,000 mark
