Hong Kong Stock Concept Tracking | Gold price repeatedly hits historical highs. The gold and precious metals sector may welcome liquidity and valuation improvements (with concept stocks attached)

Since the beginning of this year, the price of gold has surged by nearly 30%, setting a series of record highs during this period.

The recent increase has been driven by expectations of a rate cut by the Federal Reserve. Last month, the Fed initiated a rate cut cycle with a 50 basis point reduction.

In early Asian trading, gold prices edged higher in a possible technical recovery.

Spot gold briefly rose above $2670.

Analysts at ANZ Bank wrote in a report that gold prices have recently declined as safe-haven demand for precious metals has waned.

The analysts pointed out that while geopolitical risks typically trigger buying in gold, if these risks subside, the situation could quickly reverse.

They added that investors are now focusing on the US jobs report scheduled for release on Friday.

Analysts stated, "Any signs of weakness could increase expectations for the Fed to continue significant rate cuts."

Goldman Sachs raised its gold price forecast for early 2025 from $2700 per ounce to $2900, citing increasing ETF flows as Western and Chinese central banks cut rates, and as central bank purchases increase.

Goldman Sachs stated in the report, "We reiterate our recommendation to be long gold, as the gradual benefits of global rate cuts, structurally higher central bank demand, and gold's hedge against geopolitical, financial, and economic recession risks will gradually provide support."

Related companies in the gold and precious metals sector:

Zijin Mining (02899), SD GOLD (01787), Zhaojin Mining (01818), Lingbao Gold (03330), China Gold International (02099), and Shandong Gold Mining (03939), among others