Market Insight | Gold stocks continue to rebound, gold breaks through $2600 to hit a new high since listing, institutions believe sector valuation repair is expected
Gold stocks continue to rebound, with the stock prices of multiple companies rising. The price of gold broke through $2600 per ounce, reaching a new high. Goldman Sachs maintains a 2025 gold price target of $2700, believing that rate cuts will drive precious metals higher. Industrial Securities points out that despite the uncertainty in the US economy, there is still room for gold price to rise, and the valuation of gold stocks is expected to improve. CITIC Securities is optimistic about the allocation value of gold
According to the Wisdom Finance app, gold stocks continued to rebound. As of the time of publication, China Silver Group (00815) rose by 3.51% to HKD 0.295; Lingbao Gold (03330) rose by 3.06% to HKD 3.03; China Gold International (02099) rose by 2.84% to HKD 30.75; Zhaojin Mining (01818) rose by 2.39% to HKD 12.84; Shandong Gold (01787) rose by 2.5% to HKD 15.58.
On the news front, the price of gold recently hit a new high, with the main December contract of gold futures on the New York Mercantile Exchange (COMEX) breaking through the $2600 per ounce mark, setting a new record since its listing. Goldman Sachs previously released a research report maintaining a target price of $2700 per ounce by early 2025, believing that with the Federal Reserve preparing to cut interest rates, inflows from asset management institutions will drive the rise of precious metals. The continued strong demand from central banks around the world will also provide support.
Industrial Securities pointed out that although there is significant uncertainty in the future trend of the U.S. economy, the hidden downside risks are relatively clear. Coupled with the impact of global geopolitical risks, the upward trend of gold price is relatively certain with this rate cut. Currently, the valuation of gold stocks is at a historical low range, reflecting a rather pessimistic market expectation. With the continued rise in gold prices, the valuation is expected to recover in the future. CITIC Securities also stated that looking ahead, they continue to see the value of gold allocation under the rate cut trading