Understanding the Market | Most Gold Stocks Rebound, Wosh's Speech Eases and Boosts Gold Prices, Goldman Sachs Says the Gold Bull Market Is Not Over Yet

According to Zhitong Finance APP, most gold stocks rebounded. As of the time of publication, China Gold International (02099) rose 12.82% to HKD 138.2; Lingbao Gold (03330) rose 9.93% to HKD 13.91; Chifeng Gold (06693) rose 9.31% to HKD 25.12; Zijin Mining International (02259) rose 8.59% to HKD 96.1; and Zhaojin Mining (01818) rose 6.96% to HKD 17.53.

On the news front, Walsh's comments at the central bank meeting were somewhat dovish, driving a rebound in precious metal prices, with spot gold recovering to USD 4,100 on Wednesday. On July 1, newly appointed Federal Reserve Chairman Walsh spoke at the European Central Bank's Global Central Bank Forum, noting that inflation risks have decreased and inflation expectations have declined over the past four weeks. This was Walsh's first attendance at an important overseas central bank meeting as chairman since he took office in May. Additionally, the latest data released on the same day showed that the U.S. June S&P Global Manufacturing PMI final value and June ISM Manufacturing PMI both weakened, with the June ISM New Orders Index and Manufacturing Prices Paid Index both falling short of previous values.

Furthermore, Goldman Sachs maintains its year-end target price of USD 4,900 per ounce. Samantha Dart, co-head of Goldman Sachs' Commodity Research, stated in a report released last Sunday evening: "The upward trend in gold has not yet ended." The driving forces come from the continued reserve diversification by emerging market central banks and long-term concerns about the sustainability of Western fiscal policies