Market Insight | Gold stocks generally weaken, current rate cut expectations are already sufficient, international gold prices face the risk of a temporary pullback
Gold stocks are generally weakening, with Lingbao Gold falling by 4.01% to HKD 3.35, China Gold International falling by 1.44% to HKD 41, and SD-GOLD falling by 0.95% to HKD 16.68. On Thursday, the spot gold price fell to $2480, with the risk of a phased pullback in gold prices. Shengbao Bank pointed out that the gold trend is exhausted and is paying attention to the impact of the upcoming Jackson Hole meeting on the market. Despite the increase in net long positions, the overall market pricing remains biased to the downside, leaving investors with room to increase their gold allocations
According to the Wise Finance APP, gold stocks are generally weakening. As of the time of publication, Lingbao Gold (03330) fell by 4.01% to HKD 3.35; China Gold International (02099) fell by 1.44% to HKD 41; Shandong Gold (01787) fell by 0.95% to HKD 16.68.
On the news front, during the U.S. session on Thursday, spot gold touched down to $2480, the first time since August 16. The latest report from Shengbao Bank indicates that the risk of gold consolidation or even a pullback is imminent. After the latest rebound set a new record, the gold price trend shows signs of fatigue, especially considering the mild reaction to weak U.S. job growth and the Federal Open Market Committee meeting minutes almost confirming a rate cut in September. Guotai Junan Futures stated that the rate cut expectations are already quite sufficient, posing a risk of a temporary pullback in international gold prices.
UBS released a research report pointing out that as the gold price continues to hit historical highs, the market is gradually adapting to prices above $2500 per ounce. The short-term gold price trend will mainly depend on the policy signals Powell releases at the Jackson Hole meeting later this week, with a possibility of a brief pullback. The bank further noted that although net long positions on the New York Commodity Exchange (Comex) have increased recently, they are still below historical highs, indicating that the overall market pricing remains relatively light, leaving investors with ample room to further increase their gold allocations