Understanding the Market | LINGBAO GOLD fell 4%, leading the decline in gold stocks as international gold prices surged and then retreated, with short-term market uncertainty rising
The performance of gold stocks is weak. As of the time of writing, LINGBAO GOLD is down 4%, trading at HKD 3.36; CHI SILVER GP is down 1.59%, trading at HKD 0.31; ZIJIN MINING is down 1.3%, trading at HKD 16.7; and SD GOLD is down 0.91%, trading at HKD 15.28. On the news front, international gold prices have been highly volatile recently, having reached a historical high in the past week before retreating. In the early hours of October 30, spot gold prices briefly touched a historical high of USD 2790.15 per ounce, followed by a nearly 2% correction over the next two days. Baocheng Futures stated that after a sustained rise in precious metals, there is a strong willingness among market bulls to take profits. With the U.S. elections and the November interest rate meeting approaching, short-term market uncertainty is rising, and funds may continue to take profits. However, JP Morgan believes that the driving factors for gold prices still exist in the long term, maintaining a positive long-term outlook. Gold continues to be the main beneficiary of the Federal Reserve's interest rate cut cycle, central bank gold purchases, and global currency depreciation targets. These driving factors have supported gold prices at different times over the past year and are likely to continue regardless of the outcome of the U.S. elections
According to Zhitong Finance APP, gold stocks are showing weak performance. As of the time of publication, Lingbao Gold (03330) is down 4%, trading at HKD 3.36; CHI SILVER GP (00815) is down 1.59%, trading at HKD 0.31; Zijin Mining (02899) is down 1.3%, trading at HKD 16.7; SD GOLD (01787) is down 0.91%, trading at HKD 15.28.
On the news front, international gold prices have been highly volatile recently, having reached a historical high in the past week before retreating. In the early hours of October 30, the spot gold price briefly touched a historical high of USD 2790.15 per ounce, followed by a nearly 2% correction over the next two days. Baocheng Futures stated that after a sustained rise in precious metals, there is a strong willingness among market bulls to take profits. With the U.S. elections and the November interest rate meeting approaching, short-term market uncertainty is rising, and funds may continue to take profits.
However, JP Morgan believes that the driving factors for gold prices still exist in the long term, maintaining a positive long-term outlook. Gold continues to be the main beneficiary of the Federal Reserve's interest rate cut cycle, central bank gold purchases, and global currency depreciation targets. These driving factors have supported gold prices at different times over the past year and are likely to continue regardless of the outcome of the U.S. elections