Understanding the Market | Most Gold Stocks Rise as Multiple Factors Help Gold Prices Reach New Highs; Institutions Claim Precious Metals Remain in a Long-term Bull Market
Gold stocks generally rose, with EVEREST GOLD up 11.05%, TONGGUAN GOLD up 8.74%, and ZIJIN MINING up 4%. Spot gold surpassed USD 4,190 per ounce, and New York futures gold exceeded USD 4,200 per ounce, setting a new historical high. Analysts believe that the rise in gold prices is influenced by the trade tensions between China and the United States, geopolitical uncertainties, and expectations of interest rate cuts by the Federal Reserve. CITIC Futures pointed out that precious metals are still in a long-term bull market and have strategic allocation value. Federal Reserve Chairman Jerome Powell hinted at possible interest rate cuts, further solidifying market expectations
According to Zhitong Finance APP, most gold stocks rose, with EVEREST GOLD (01815) up 11.05% to HKD 2.11; TONGGUAN GOLD (00340) up 8.74% to HKD 3.11; ZIJIN MINING (02899) up 4% to HKD 33.28; ZIJIN GOLD INTERNATIONAL (02259) up 3.78% to HKD 142.6; and Lingbao Gold (03330) up 1.28% to HKD 19.82.
On the news front, on October 15, spot gold briefly broke through USD 4,190 per ounce, rising over 1% during the day, while New York futures gold surpassed the USD 4,200 per ounce mark, both hitting historical highs. Analysts believe that the recent rise in gold prices is mainly supported by three factors: first, the ongoing escalation of tariff trade tensions between China and the United States; second, the increasing geopolitical uncertainties in various parts of the world; and third, the market's general expectation that the Federal Reserve will begin a rate-cutting cycle. These factors collectively enhance gold's appeal as a safe haven, driving continuous capital inflow. CITIC Futures believes that precious metals remain in a long-term bull market and possess strategic allocation value.
In the early hours of October 15, Beijing time, Federal Reserve Chairman Jerome Powell hinted that the U.S. labor market continues to deteriorate, and despite the government shutdown affecting economic assessments, the possibility of a rate cut this month remains. He also revealed that the Federal Reserve may halt its balance sheet reduction (tapering) actions in the coming months. Analysts believe that Powell's latest remarks "reinforce expectations for further rate cuts," keeping the Federal Reserve on track for another rate reduction
