Hong Kong-listed gold stocks continued their upward trajectory, with SD Gold leading the pack by gaining over 5%. Zijin Mining International, Zhaojin Mining, and Lingbao Gold each rose more than 3%, while Chifeng Gold and Zhufeng Gold advanced over 2%.
The rally followed a sharp overnight surge in spot gold prices during New York trading hours. In early Asian trading, spot gold climbed over 1% to hit a record high of $4,490.88 per ounce, marking a 71% year-to-date gain. Analysts attribute the latest uptick to traders pricing in two potential Federal Reserve rate cuts in 2026, coupled with former President Trump's public advocacy for looser monetary policy. Lower interest rates typically benefit non-yielding precious metals. Geopolitical risks have further bolstered gold and silver's safe-haven appeal.
Several major banks including Goldman Sachs project continued gold price strength in 2026, with a base case target of $4,900/oz and greater upside potential. The firm noted that ETF investors are now competing with central banks for limited physical supply.
JPMorgan highlighted that tariff uncertainties combined with robust demand from ETFs and central banks drove gold to record highs in 2025. The bank suggests new demand from Chinese insurance giants and cryptocurrency communities could propel prices to $5,055 by late 2026.
Comments