Hong Kong Stock Concept Tracking | Gold bar prices reach $1 million, precious metal sector performance may gradually materialize (with concept stocks)
With increasing global economic uncertainty, the price of gold has reached a new high, with the price of gold bars breaking $1 million recently. Expectations of a Fed rate cut have boosted market optimism for gold, with the international gold price expected to reach $3,000 per ounce next year. Experts predict that with increased liquidity, gold stocks may usher in a bull market, with related companies such as Zijin Mining, SD-GOLD, and others expected to benefit
According to the Zhitong Finance and Economics APP, the spot price of gold has exceeded $2500 per ounce, hitting a historical high, while gold bars typically weigh around 400 ounces, meaning that the price of each gold bar has reached a milestone of over $1 million. Of course, there may be slight differences in the data.
As reported by Fortune magazine's website on the 18th, with the increasing possibility of a Fed rate cut, the capital market is becoming more optimistic about the rise in gold prices.
The U.S. precious metals exchange previously stated that if global geopolitical uncertainties escalate and central banks around the world continue to buy gold, the international gold price could reach $3000 per ounce next year.
According to estimates by JP Morgan, global central banks purchased over 1000 tons of gold last year.
With the increasing global economic uncertainty, the attractiveness of gold as a safe-haven asset continues to strengthen, and market demand for gold is also growing. This historic price breakthrough once again highlights the important position of gold in the global financial market.
TF Securities believes that with the Fed entering a rate-cutting cycle, liquidity may gradually loosen, providing further support for the gold price. Gold stocks have a duration attribute, and in the event of a major bull market in gold, the typical path for gold stocks is for PE to rise first, followed by the gradual realization of gold stock performance as gold prices rise, reaching a peak under the dual effect of PE net profit release, achieving a "Davis double hit."
Gold and precious metal related companies:
Zhaojin Mining (02899), SD GOLD (01787), Zhaojin Mining (01818), Lingbao Gold (03330), China Gold International (02099), and Lao Pu Gold (06181), etc