According to data released by the central bank, China's gold reserves were 72.74 million ounces at the end of March and 72.58 million ounces at the end of February. The central bank increased its gold reserves for the 17th consecutive month.
On April 7, the central bank released data showing that China's gold reserves were 72.74 million ounces at the end of March and 72.58 million ounces at the end of February. The central bank increased its gold reserves for the 17th consecutive month. Wang Qing, chief macro analyst at Dongfang Jincheng, said that against the backdrop of increased fluctuations in US bond yields, China's central bank continues to increase its gold holdings, which helps preserve and increase the value of reserve assets. Furthermore, it can also lay a solid foundation for continuing to advance the internationalization process of the RMB.
On the evening of April 6, international gold prices reached a record high. London spot gold surged 1.77% to 2329.57 US dollars/ounce; COMEX gold surged 1.76% to 2349.1 US dollars/ounce. Central banks around the world have increased their gold holdings, and market sentiment is still high, leading to a sharp rise in gold prices. Many analysts predict that once the Federal Reserve starts cutting interest rates, it may stimulate more investors' demand for gold, especially for physically supported gold ETFs. Gold prices are expected to continue to rise.
During the Ching Ming Festival holiday, the price of gold jewelry continued to rise. According to data from the Gold Investment Network, on April 3, the gold price of Chow Tai Fu's jewelry broke through the 700 yuan mark and reported 703 yuan/gram; it continued to rise on April 7 to 718 yuan/gram. Other brands, such as Zhou Liufu, Lao Miao, Zhou Shengsheng, etc., also cost more than 700 yuan per gram of gold for jewelry.
Recently, the topic of “whether to monetize the gold in your hands” has sparked a buzz among netizens. Some people think that as long as the US dollar does not collapse, the price of gold will continue to rise; others think that there are no investment products that only rise or fall.
Cao Liulong, head of strategy at Fangzheng Securities, said that the price of gold will generally fall during the “interest rate hike” cycle of the Federal Reserve, but the price of gold will continue to rise sharply during this “interest rate hike” cycle, which means that the traditional gold analysis framework has failed. However, the acceleration of anti-globalization has led to the widening of the “dollar credit rift,” which is the anchor of the recent “boom” in gold prices. Gold is the ultimate “scarce asset”, and the price center has begun to move upward. Once the “oil dollar” collapses, no matter how difficult it is to rebuild, there may be an era of “national disputes” without a single reserve currency in the future, and gold is expected to start a ten-year long boom.
Guojin Securities pointed out that the current market value of gold stocks does not fully reflect the recent rise in gold prices. It is expected that in the first quarter of 2024, when gold prices rise month-on-month and cost control is relatively stable, gold companies' performance will be better delivered, and gold stocks have more room to “make up” compared to gold prices. Under the influence of factors such as the Federal Reserve's balance sheet restructuring and the better performance of gold stocks in the first quarter, it is expected that Q2 gold stocks will experience a major upward trend. It is recommended to focus on targets such as Shandong Gold, Zhongjin Gold, Yintai Gold, Chifeng Gold, and Zijin Mining.
Related concept stocks:
$ZIJIN MINING (02899.HK)$: Goldman Sachs reported at the end of March that it maintained Zijin Mining's “buy” rating and raised its profit forecast for this year and next two years by 3% to 9%, reflecting the Group's announcement of higher copper and gold production. The target price increased from HK$17.5 to HK$19.
$SD GOLD (01787.HK)$: Recently, Shandong Gold announced its 2023 annual results, with revenue of about 59.275 billion yuan, up 17.83% year on year; profit attributable to shareholders was 2,267 billion yuan, up about 89.99% year on year. In 2023, the company's mineral gold production was 41.78 tons, an increase of 3.10 tons over the previous year, or 8.03%.
$CHINAGOLDINTL (02099.HK)$: China Gold International previously announced that the company's Changshan Hou Gold Mine (Changshan Hou Mine) will fully resume normal production and operation on January 3, 2024; the Jiama copper-gold polymetallic mine, which belongs to it, has gradually resumed production on December 15, 2023.
$ZHAOJIN MINING (01818.HK)$: Damo's March 6 research report said that the price of gold hit a new high of more than 2,100 US dollars per ounce, and the funds raised will benefit from this. The bank estimates that for every 1% increase in the price of gold, the net profit of Zhaojin in 2024 will increase by 2.9%.
edit/new