Understanding the Market | Gold Stocks Continue Recent Uptrend, COMEX Gold Surpasses $3,700, Profit Expectations for Gold Resource Stocks Strengthen
Gold stocks continue to rise, with SD GOLD up 3.65%, CHI SILVER GP up 2%, ZHAOJIN MINING up 1.95%, and CHIFENG GOLD up 1.16%. COMEX gold has surpassed USD 3,700 per ounce, with a cumulative increase of over 40% this year. JP Morgan has raised its gold price forecast, expecting gold prices to exceed USD 4,000 per ounce by 2026, and if the independence of the Federal Reserve is compromised, gold prices could rise to USD 5,000. Huaxi Securities is optimistic about the allocation opportunities in gold stocks, believing that the profit expectations for gold resource stocks have strengthened
According to Zhitong Finance APP, gold stocks continue their recent upward trend. As of the time of writing, Shandong Gold (01787) is up 3.65%, trading at HKD 36.34; China Silver Group (00815) is up 2%, trading at HKD 0.51; ZHAOJIN MINING (01818) is up 1.95%, trading at HKD 30.3; and CHIFENG GOLD (06693) is up 1.16%, trading at HKD 31.4.
On the news front, on September 15, COMEX gold broke through USD 3,700 per ounce, reaching a new high, with a cumulative increase of over 40% this year. It is reported that JP Morgan has raised its price forecast for gold, expecting spot gold prices to exceed USD 4,000 per ounce in the first quarter of 2026, driven by the upcoming Federal Reserve rate cut cycle and the resulting strong investor demand. Additionally, if the independence of the Federal Reserve is compromised, the rotation of investor funds could push gold prices to a high of USD 5,000 within two quarters.
Huaxi Securities previously pointed out that in the long term, global concerns about currency and debt are benefiting gold from the trading direction of debt and monetary easing. The passage of the "Big and Beautiful" bill is expected to increase the U.S. fiscal deficit by USD 3.4 trillion, with many countries around the world experiencing high fiscal deficits and rising government bond yields. They are optimistic about future gold prices, benefiting from the rise in gold prices, with earnings expectations for gold resource stocks increasing. Currently, gold stock valuations are at a relatively low level, and attention should be paid to allocation opportunities in gold stocks
