Gold has performed well in the first half of 2024, with a rise of about 12% since the beginning of the year, which exceeds most major asset categories. Looking ahead to the second half of the year, the World Gold Council (WGC) believes that the key question in investors' minds is whether the momentum of gold can continue or has already lost steam. On the product structure side, the operating income of 10-30 billion yuan products is 401/1288/60 million yuan, respectively.
Gold remains one of the best performing assets in 2024, judging by its returns so far this year compared to other major asset categories.
(Source: WGC)
So far, gold has benefited from continued central bank purchases, investment flows from Asia, strong consumer demand, and the continued push of geopolitical uncertainty. The World Gold Council believes that the key question in investors' minds is whether the momentum of gold can continue or has already lost steam.
The World Gold Council believes that the key question in investors' minds is whether the momentum of gold can continue or has already lost steam.
Except for a few exceptions, global economic growth indicators are fluctuating under low but still worrying inflation rates, which urgently require interest rate cuts.
The market outlook is broadly the same.
The World Gold Council said: "Our analysis shows that the current gold price roughly reflects people's general expectations for the second half of the year. However, things rarely go as planned. The global economy and gold seem to be waiting for a catalyst."
"For gold, we believe that the catalyst may come from interest rate cuts in developed markets, attracting Western investment flows, and continued support from global investors seeking to hedge against bubble risk in complacent stock markets and persistent geopolitical tensions."
Of course, gold's prospects are not without risk.
Significant declines in central bank demand or widespread profit taking by Asian investors could weaken its performance.
However, at this point, global investors continue to benefit from gold's role in a sound asset allocation strategy.
Hong Kong jewelry retailer Luk Fook announced a significant revenue growth for the past fiscal year. Sales rose 28% in the 12 months ended March 31.
The company attributed the sales growth to the recovery of the tourism industry, with profits up 37%.
"Benefiting from the low base effect and excellent sales of gold, the Group's retail business has achieved satisfactory performance, particularly in Hong Kong and Macau markets," the company said.
Gold and platinum jewelry sales increased by 51%, accounting for 73% of total sales. The statement said that despite the historic high gold prices, the company still believes that consumer confidence will not be affected in the long term.
"While the temporary rise in gold prices may affect sales performance, the increase in profit margins will help alleviate the impact of the sales decline."
"After consumers adapt to the high gold prices, the sales of gold products are expected to return to normal levels."