Gold stocks in Hong Kong staged a rebound after hitting intraday lows. At the time of writing, Zihai Gold (02489) rose 6.4% to HK$1.33; Zijin Gold International (02259) gained 3% to HK$175.2; China Gold International (02099) increased 1.57% to HK$194.1; and Shandong Gold (01787) climbed 1.41% to HK$43.14.
On the news front, spot gold surged strongly in the afternoon of January 20, breaking through the $4,700 per ounce level during the session to set another all-time high. By the time of writing, it was trading at $4,702.14 per ounce, up 0.67%.
Zhongcai Futures stated on the 20th that in the short term, given ongoing geopolitical uncertainties, renewed questions over the Federal Reserve's independence, and persistent physical silver shortages, gold and silver still have room to appreciate. Precious metals are expected to trade with a firm bias amid fluctuations, with subsequent attention focused on geopolitical risks and Fed communications.
Dongwu Futures pointed out that precious metals have been trending higher with volatility recently. Contributing factors include renewed safe-haven demand fueled by the US announcement of tariffs on European nations. Furthermore, criminal charges against Powell essentially represent another challenge to the Fed's independence, undermining confidence in the US dollar. Lastly, the Shanghai Futures Exchange's new policy significantly reducing the daily trading limit for silver futures to 3,000 lots may force out some leveraged speculative capital, thereby curbing short-term speculative demand. Key factors to watch going forward include the appointment of the Federal Reserve Chair, US-Europe tariff disputes, and geopolitical developments in South America and Greenland.
