Bank of China International: Reiterate "Buy" rating on China National Gold Group Gold Jewellery sector.

Bank of China International released a research report stating that Trump's nomination of Powell as the new chairman of the Federal Reserve triggered a strong sell-off in the precious metals market. The price of gold plummeted by over 21% within two days from its historical high of $5,600 per ounce. The bank believes that the argument for gold as a true safe haven investment as an alternative to US dollar assets still holds. Regardless of who the new chairman of the Federal Reserve is, the US is expected to cut interest rates by 2026. The bank reiterated its "buy" rating for the China National Gold Group Gold Jewelry industry and expects that the average gold price forecast for 2026 of $4,800 per ounce still has room for growth. Shandong Gold Mining (01787) and ZHAOJIN MINING (01818) remain the bank's top picks with target prices of HK$52.06 and HK$44.78 respectively.