HK Stock Market Move | Golden stocks rebounded today, Goldman Sachs believes that central bank buying will remain strong, and is expected to provide bottom support for gold.

Gold stocks rebounded today. As of the time of writing, Zhaojin Mining (01818) rose by 4.85% to 18.37 Hong Kong dollars; Persistence Gold (02489) rose by 4.41% to 0.71 Hong Kong dollars; Chifeng Jilong Gold Mining (06693) rose by 2.9% to 26.24 Hong Kong dollars; Shandong Gold Mining (01787) rose by 2.51% to 17.58 Hong Kong dollars. On the news front, China's gold reserves at the end of June reported 75.44 million ounces (about 2346.446 tons), an increase of 480,000 ounces (about 14.93 tons) compared to the previous month. This marks the 20th consecutive month of central bank gold accumulation. Goldman Sachs stated that despite facing pressure from expectations of tighter monetary policy by the Federal Reserve, central bank buying is expected to provide support for the bottom of the gold market. Demand remains strong, with the bank estimating that central banks purchased 81 tons of gold in May, with a three-month average monthly purchase volume of 67 tons, significantly higher than the average level of 17 tons prior to 2022. Zhongtai published a research report stating that, with regards to gold investment, on one hand, they have always emphasized the investment value on the commodity side; on the other hand, after experiencing a deep correction in the first half of the year, the valuation levels of mining gold companies have significantly declined to low levels compared to the beginning of the year, offering high odds. In addition to the rally in valuation repair, they are expected to further benefit from the price elasticity brought about by the rising gold price. Furthermore, the ongoing strength in the gold price itself is also enhancing the success rate of gold stock investments.