Hong Kong-listed gold mining stocks surged on July 30, with Zijin Gold International jumping 4.84%, as bullion prices held above $4,000 an ounce ahead of the Federal Reserve's policy decision. The rally extended gains from the previous session when the A-share precious metals sector rose 2.58%, supported by strong first-half earnings forecasts from Chinese gold producers.
Hong Kong gold mining stocks rallied on July 30, with Zijin Gold International (紫金黄金国际, 02259.HK) surging 4.84%, as bullion prices held above $4,000 an ounce ahead of the Federal Reserve's policy decision.
"Market confidence in gold is starting to improve," said Joni Teves, gold strategist at UBS Global Wealth Management. "We continue to expect gold prices to rebound from current levels by year-end."
Zhufeng Gold (珠峰黄金, 01815.HK) rose 3.37%, while Chifeng Gold (赤峰黄金, 06693.HK) added 3.27%. The gains followed a 2.58% advance in the A-share precious metals sector on July 29, when COMEX gold settled at $4,033.4 an ounce and COMEX silver rose 0.97% to $58.085. Several Chinese gold miners have reported strong first-half earnings, with Chifeng Gold guiding net profit up 54% to 61% year-over-year and Western Gold forecasting a 280% to 333% increase. Zhongjin Gold expects net profit to rise 52% to 71%, while Zhaojin Gold guided for a 347% to 437% surge.
The rally comes as traders await the Federal Reserve's July 30 policy decision, with gold prices consolidating near the $4,000 support level after a sharp second-quarter pullback. UBS forecasts gold reaching $4,675 an ounce by end-2026 and $4,800 by end-2027, while Goldman Sachs said central bank buying — averaging 67 metric tons per month over the past three months — should provide a floor for prices. A Reuters survey showed analysts cut their 2026 gold price forecasts for the first time since late 2023, with the median estimate at $4,509 an ounce, though most still expect support from central bank purchases and fiscal sustainability concerns.
The precious metals sector had undergone corrections earlier this year that left room for valuation repair, while positive earnings momentum from producers continued to support investor confidence. Guoxin Securities said in a research note that gold prices are showing signs of bottoming near $4,000 and recommended building positions on dips, citing historically low valuations and significant earnings elasticity for mining companies as gold prices rise. ANZ Research noted that while gold faces near-term headwinds from hawkish Fed expectations and a firm US dollar, investment positioning looks light after months of ETF outflows, suggesting limited further downside.
This article is for informational purposes only and does not constitute investment advice.
