Market Insight | Gold stocks rise again, Fed rate cut imminent, gold price hits new all-time high again
Gold stocks rose again, with CHINAGOLDINTL up 3.37%, Zijin Mining up 1.9%, and ZHAOJIN MINING up 1.08%. The international gold price hit a historical high, with COMEX gold reaching $2617.4 at one point. The market is focusing on the upcoming interest rate decision by the Federal Reserve, with the likelihood of a 50 basis point rate cut rising to 59%. Guojin Securities predicts that the price of gold will continue to rise, with the central price expected to reach $2600-2700 per ounce by 2025
According to the information from the Wise Finance APP, gold stocks have risen again. As of the time of publication, CHINAGOLDINTL (02099) rose by 3.37% to HKD 32.2; ZIJIN MINING (02899) rose by 1.9% to HKD 15.02; ZHAOJIN MINING (01818) rose by 1.08% to HKD 13.1; Shandong Gold (01787) rose by 1.01% to HKD 16.
On the news front, on September 16th, the international gold price hit a new historical high again, with COMEX gold briefly reaching $2,617.4 and spot gold rising to a high of $2,589.68. The market is now focusing on the interest rate decision to be announced by the Federal Reserve in the early hours of September 19th Beijing time. According to the CME Group's FedWatch Tool, the market currently expects a 59% probability of a 50 basis point rate cut by the Federal Reserve, up from 43% last Friday.
Guotai Junan Securities stated that as the timing of the rate cut approaches, the gold price is expected to continue its rapid upward trend, with the central operating range for gold prices in 2025 expected to climb to $2,600-2,700 per ounce. The bank pointed out that the official start of the Fed rate cut indicates a significant increase in the volatility of domestic gold stocks, making it more difficult to achieve relative and absolute returns. Gold companies with refining processes are more likely to release performance in Q4 this year, which can be verified by performance forecasts at the end of January 2025. Stock prices have the foundation to recover towards the gold price