Understanding the Market | Gold stocks generally opened lower, as easing risk aversion suppressed precious metals, leading to a significant correction in gold and silver prices
Gold stocks generally opened lower. As of the time of publication, China Gold International fell 3.31% to HKD 125.7; Tongguan Gold fell 2.92% to HKD 2.66; Shandong Gold fell 1.73% to HKD 33; CHI SILVER GP fell 1.56% to HKD 0.63; and Chifeng Gold fell 1.43% to HKD 28.96. On the news front, on the evening of October 27, gold and silver prices significantly corrected. Spot gold plummeted 3%, briefly falling below the USD 3,900 mark. CITIC Futures pointed out that recently, China and the U.S. reached a "substantial framework" for trade in Kuala Lumpur, and the U.S. has temporarily lifted the 100% tariff threat against China, leading to a noticeable decline in safe-haven demand, which suppressed short-term gold price performance. In a recent research report, Shenwan Hongyuan Securities stated that in the short term, gold is no longer a wise choice. As "going long on gold" has become the most crowded trade globally according to a Bank of America survey, highly leveraged gold ETF positions have begun to burst, causing prices to rapidly retreat from historical highs. The current high volatility severely erodes its risk-reward ratio. However, the institution also stated that from a medium to long-term perspective, gold still has allocation value
According to Zhitong Finance APP, gold stocks generally opened lower. As of the time of writing, China Gold International (02099) fell by 3.31% to HKD 125.7; Tongguan Gold (00340) dropped by 2.92% to HKD 2.66; Shandong Gold (01787) decreased by 1.73% to HKD 33; China Silver Group (00815) declined by 1.56% to HKD 0.63; and Chifeng Gold (06693) fell by 1.43% to HKD 28.96.
In terms of news, on the evening of October 27, gold and silver prices significantly corrected. Spot gold plummeted by 3%, briefly falling below the USD 3,900 mark. CITIC Futures pointed out that recently, China and the United States reached a "substantial framework" for trade in Kuala Lumpur, and the U.S. has temporarily lifted the 100% tariff threat against China, leading to a noticeable decline in safe-haven demand, which suppressed short-term gold price performance. Shenwan Hongyuan Securities stated in a recent research report that in the short term, gold is no longer a wise choice. As "going long on gold" has become the most crowded trade according to a Bank of America survey, highly leveraged gold ETF positions have begun to burst, causing prices to rapidly retreat from historical highs. The current high volatility severely erodes its risk-reward ratio. However, the institution also stated that from a medium to long-term perspective, gold still has allocation value
