Market Analysis | Gold stocks continue to decline, with the strengthening US dollar putting pressure on gold prices, reigniting concerns about economic recession in the market

Gold stocks continue to decline. As of the time of publication, Zijin Mining fell by 5.24% to HKD 14.48, CHINAGOLDINTL fell by 4.07% to HKD 33, LINGBAO GOLD fell by 1.38% to HKD 2.85, and SD GOLD fell by 1.38% to HKD 14.28. On the news front, pressured by the strengthening US dollar, the price of gold fell to its lowest level in over a week. The current market is awaiting US non-farm payroll data. The US August ISM Manufacturing PMI was 47.2, lower than the expected 47.5 but higher than the previous value. The US ISM Manufacturing New Orders Index fell to its lowest level since May 2023. Market concerns about economic slowdown have reignited. However, Goldman Sachs remains bullish on gold. Analysts at Goldman Sachs stated in a report that gold is the commodity most likely to rise in price, maintaining a target price of $2700 per ounce by early 2025. Based on the current spot gold price on Tuesday, Goldman Sachs believes that there is over 8% upside potential for gold price by early next year