Changes in Hong Kong stocks | Gold stocks rose again, and spot gold rebounded above $4,030 to provide support from physical demand and central bank purchases

Zhitongcaijing · 3d ago

The Zhitong Finance App learned that gold stocks rose again. As of press release, China Gold International (02099) rose 6.32% to HK$151.5; Zhaojin Mining (01818) rose 4.92% to HK$19.41; Chifeng Gold (06693) rose 4.39% to HK$27.56; and Zijin Gold International (02259) rose 4.34% to HK$102.2.

According to the news, spot gold rebounded in early Asian trading on Tuesday. The price once fell below $4,000 and then rebounded above $4,030. ANZ Research Analysts reported that physical gold demand for this metal and central bank purchases are supporting the gold market. The analysts added that although the price of gold faced short-term resistance from the Federal Reserve's tightening expectations and a strong dollar, after several months of exchange-traded fund (ETF) outflows, gold's investment position seemed very thin, indicating that there may be limited room for further decline. High interest rate environments usually drag down unprofitable assets such as gold. Goldman Sachs believes that the central bank's purchase of gold will provide bottom price support and offset the short-term downward pressure brought about by the Federal Reserve's hawkish expectations.