Understanding the Market | Gold Stocks Rise Again, Short-term Price Adjustment Does Not Change the Medium to Long-term Trend, Multiple Positive Factors Expected to Form Strong Support

Gold stocks are on the rise again. As of the time of writing, Lingbao Gold rose by 3.29% to HKD 3.14, Shandong Gold rose by 2.12% to HKD 18.28, and Zhaojin Mining rose by 1.39% to HKD 13.16. Xingzheng Futures pointed out that the previous decline in precious metal prices was due to the weakening of regional risks and profit-taking by long positions. After the overheated bullish sentiment returned to normal, although there may be some short-term adjustments in gold prices, the medium to long-term outlook for gold is not pessimistic. Geopolitical risks such as conflicts in the Middle East and other regions, expectations of global credit risks, continuous central bank gold purchases, and other bullish factors will continue to provide strong support for precious metals in the future. Hongyuan Futures also believes that the scale of US Treasury bond issuance remains high, European Central Bank officials have indicated that a rate cut in June is appropriate, which may lead to a short-term adjustment in precious metal prices. However, due to expectations of a rate cut by the Federal Reserve and a slowdown in balance sheet reduction, coupled with geopolitical risks triggered by Israel's attack on Gaza, precious metal prices may be more likely to rise than fall