Gold-related stocks extended their rally, with Zhaojin Mining Industry Co Ltd (HKEX: 01818) rising 6.45% to HK$18.01 and Chifeng Jilong Gold Mining Co Ltd (HKEX: 06693) gaining 6.35% to HK$33.50.
Shandong Gold Mining Co Ltd (HKEX: 01787) advanced 4.70% to HK$18.48, while Lingbao Gold Group Co Ltd (HKEX: 03330) climbed 4.18% to HK$17.46.
Zijin Mining Group Co Ltd (HKEX: 02899) rose 4.02% to HK$30.56, and China Gold International Resources Corp Ltd (HKEX: 02099) added 3.02% to HK$184.40.
On the news front, spot gold continued to push higher on the morning of November 5, breaking through the $4,100 per ounce mark and gaining more than 1.6% intraday.
This latest leg up in gold prices was mainly driven by the outcome of the U.S. midterm elections as well as retreating U.S. dollar, Treasury yields and oil prices.
As the midterm election results became clearer, Democrats have won the Senate, and mainstream media projections also show the House flipping. The market expects that the Trump administration's future tax, fiscal spending and certain policy initiatives may face congressional constraints, pushing U.S. Treasury prices higher while nominal and real yields fell in tandem. The dollar index also fluctuated lower.
A recent report from the World Gold Council showed that in the third quarter of this year, global central banks and other official institutions added a net 321 tonnes to their gold reserves, up 42% year-on-year, marking the highest single-quarter increase since the fourth quarter of 2024. Reserve diversification and risk management remain the core drivers of central bank gold buying.
The latest research note from Commerzbank argued that gold's recent weakness has clear characteristics of an overshoot to the downside, and the bank remains optimistic about gold's long-term outlook. The core logic is that the U.S. fiscal position continues to deteriorate, leading the market to question whether the high interest rate environment can be sustained over the long term.
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