Hong Kong stocks in the Golden Industrial Concept opened higher across the board, as of the time of writing, $CHIFENG GOLD (06693.HK)$ rising over 14%, $SD GOLD (01787.HK)$ rising over 8%, $LINGBAO GOLD (03330.HK)$ rising nearly 8%, $ZHAOJIN MINING (01818.HK)$ Rising over 7%.
In terms of news, Trump's tariff policy has caused market turbulence, the USD has reached a three-year low since April 2022, and international gold prices continue to soar, with COMEX Gold Futures and London spot gold both breaking through the historic high of $3440 per ounce. Since April, both Gold Futures and spot prices have cumulatively increased by over 8%, and the year-to-date increase is close to 29%. Recently, Goldman Sachs significantly raised its gold price forecast, increasing the target for the end of 2025 from $3300 per ounce to $3700 per ounce, and it is expected that under extreme circumstances, gold could even reach $4500 per ounce.
Tianfeng released a Research Report stating that the current valuation of Golden Industrial Concept stocks is at the 20th percentile of a five-year period. The Sector's recovery has both space and momentum, and the "scissor difference" for Golden Industrial Concept stocks is converging, creating a window period. The report pointed out that Trump's significant increase in tariffs globally has heightened market concerns regarding the risk of recession in the USA and the risk of U.S. debt repayment. As the USD rapidly declines, the market is uniting around the narrative of weakened USD credit, and the end of the divergence in gold prices has opened up valuation space for gold enterprises. With gold prices rising significantly, the performance growth of Golden Industrial Concept stocks achieving a higher magnitude and duration has become a high-probability event, thereby enhancing market confidence in investing in gold enterprises.
Editor/Rocky
