Market Insight | Gold stocks rise again as Powell continues to "dove" with positive expectations for interest rate cuts
Gold stocks rose again. As of the time of publication, Shandong Gold rose by 4.49% to HKD 17.68; Zhaojin Mining rose by 2.62% to HKD 15.64; Lingbao Gold rose by 1.73% to HKD 3.53; Zijin Mining rose by 1.13% to HKD 17.88. On the news front, inflation data fell more than expected, coupled with Powell's "dovish" remarks, raising the market's interest rate cut expectations for September to 90%. Yesterday, Powell said in an interview that the economy has performed well in recent years, and the recent three inflation data have indeed boosted confidence. It is expected that economic growth will slow down this year, and inflation will continue to make progress. If the Fed waits for the inflation rate to reach 2% before cutting interest rates, it will be too late. Minsheng Securities believes that the rate cut expectations for September are already largely priced in, with clear support for gold and silver prices. In the long run, the US dollar credit is in a downward cycle, global geopolitical uncertainties persist, and the bank remains bullish on the continuous upward movement of the gold price center. Huafu Securities stated that for gold, the short-term safe-haven sentiment brought by the US political elections, as well as the worsening US fiscal deficit and market concerns about US dollar credit, indicate that the upward trend in gold prices is not over
According to the Wise Finance APP, gold stocks have risen again. As of the time of publication, Shandong Gold (01787) rose by 4.49% to HKD 17.68; Zhaojin Mining (01818) rose by 2.62% to HKD 15.64; Lingbao Gold (03330) rose by 1.73% to HKD 3.53; Zijin Mining (02899) rose by 1.13% to HKD 17.88.
On the news front, inflation data fell more than expected, coupled with Powell's "dovish" remarks, raising market expectations of a 90% rate cut in September. Yesterday, Powell stated in an interview that the economy has performed well in recent years, and the recent three inflation data releases have indeed boosted confidence. It is expected that economic growth will slow down this year, and inflation will continue to make progress. If the Fed waits for the inflation rate to reach 2% before cutting rates, it will be waiting too long.
Minsheng Securities believes that the rate cut expectations for September are already largely priced in, with clear support for gold and silver prices. In the long term, the US dollar credit is in a downward cycle, global geopolitical uncertainties persist, and the firm remains optimistic about the continuous upward movement of the gold price center. Huafu Securities stated that for gold, the short-term safe-haven sentiment brought about by the US political elections, as well as the worsening US fiscal deficit and market concerns about US dollar credit, indicate that the upward trend in gold prices is not over