$LINGBAO GOLD(03330.HK) and $SD GOLD(01787.HK) have both risen by double-digit percentages, $CHINAGOLDINTL(02099.HK) has gained five points. Hong Kong-listed gold mining stocks are strengthening alongside the gold price breakout. Besides the gold price itself rebounding above 4100, the preference of Southbound capital for targets with solid dividends and resource attributes is also amplifying the elasticity on the Hong Kong stock side.
The performance of these few companies is highly sensitive to the gold price. Every time the gold price moves up a notch, the profit elasticity of the mining companies is magnified several times over. However, the higher it goes, the more one needs to be mindful of the pullback risk after the gold price peaks.
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