Understanding the Market | Gold stocks rise collectively as spot gold breaks through the $2,700 mark, market focuses on tonight's U.S. inflation data
Gold stocks rose collectively, with ZHAOJIN MINING up 5.84%, LINGBAO GOLD up 4.73%, and CHINAGOLDINTL up 2.94%. Spot gold broke through $2,700, reported at $2,701.25 per ounce, reaching a two-week high. Data from the People's Bank of China shows that official gold reserves increased to 72.96 million ounces. The market is focused on tonight's U.S. November CPI data, with inflation expected to rise from 2.6% to 2.7%
According to Zhitong Finance APP, gold stocks have collectively risen. As of the time of writing, ZHAOJIN MINING (01818) is up 5.84%, trading at HKD 11.6; LINGBAO GOLD (03330) is up 4.73%, trading at HKD 2.88; CHINAGOLDINTL (02099) is up 2.94%, trading at HKD 40.2; and Shandong Gold (01787) is up 2.11%, trading at HKD 13.58.
In terms of news, on December 11, spot gold touched USD 2,700 per ounce, reaching a two-week high. As of the time of writing, spot gold is reported at USD 2,701.25 per ounce, up 0.26% for the day. The latest data from the People's Bank of China shows that by the end of November 2024, China's official gold reserves stood at 72.96 million ounces, an increase of 160,000 ounces (approximately 4.54 tons) from the end of October, marking the first increase in gold holdings by the People's Bank of China in half a year.
Guo Zhongwei, chief analyst of the non-ferrous metals industry at Zhongtai Securities, stated that the recent increase in global uncertainty, especially with Trump about to officially take office as President of the United States, may exacerbate the trend of de-globalization, thereby increasing the instability of the external environment. In this context, increasing gold holdings can help enhance the safety of China's reserve assets. It is worth noting that the current market is focused on the upcoming release of the U.S. November CPI and core CPI data tonight. The market generally expects the inflation rate for November to rebound, rising from last month's 2.6% to 2.7%. The core CPI is expected to remain in the range of 3.2% to 3.3%