Southern Double-Long Gold (07299) climbed more than 5% during trading, with the instrument last up 4.7% to HK$24.48, recording a turnover of HK$37.5 million. This sharp advance comes as spot gold staged a notable rally on September 3, briefly breaking through the $4,440 per ounce level.
The bullish momentum was fueled by weaker-than-expected U.S. labor market data. The ADP private payrolls report for August showed an increase of just 38,000 jobs, falling short of the 47,000 market consensus forecast. The previous month's reading was also revised down to 46,000, marking the slowest pace of job creation since the start of the year. This softening in employment conditions has alleviated concerns about further Federal Reserve rate hikes, prompting gold prices to rebound from session lows following the data release.
According to UBS strategists, the current gold bull market that began in 2018 still has room to run. The bank highlighted that the traditional pricing relationship between gold and real interest rates has fundamentally shifted since Russia's foreign exchange reserves were frozen. This structural change, combined with continued central bank buying, the failure of traditional equity and bond hedges during risk-off episodes, and mounting U.S. fiscal pressures, suggests that bullion retains significant upside potential.
Comments