HK Stock Market Move | Gold stocks are rising across the board, with spot gold breaking through $4100. Central bank buying is expected to provide a bottom support for gold.

Gold stocks across the board are rising, as of the writing, Chifeng Jilong Gold Mining (06693) is up 8.03% to HK$30; LINGBAO GOLD (03330) is up 7.26% to HK$17.87; ZIJIN GOLD INTL (02259) is up 5.45% to HK$114.1; Shandong Gold Mining (01787) is up 2.85% to HK$19.48. On the news front, on July 22, spot gold prices rose above $4100 per ounce for the first time in a week. It is reported that China's gold reserves stood at 75.44 million ounces at the end of June, an increase of 480,000 ounces from the previous month, marking the 20th consecutive month of gold accumulation by the central bank. Goldman Sachs stated that despite facing pressure from expectations of tightening by the Federal Reserve, central bank buying is expected to provide underlying support for gold. Shenwan Hongyuan Group pointed out that in the short term, nonfarm payrolls and CPI fell below expectations, with Powell's dovish stance, easing rate hike expectations stabilizing gold prices. Ongoing conflicts in the Middle East may exert pressure, but in the long term, the restructuring of the monetary and credit landscape continues. After the passage of the large and medium-sized American bills, the US fiscal deficit will increase. Currently, China's gold reserves are relatively low, and we believe central bank gold purchases are a long-term trend, with the central price of gold expected to continue to rise. The current valuation of the precious metals sector is at the lower end of historical average.