Gold mining stocks plummeted again, hitting a new recent low for the adjustment period. Industry insiders believe that the second quarter may present a good opportunity for positioning.

The tense situation in the Middle East has not eased, leading to increased attention on the price of gold and gold mining stocks. Recently, gold mining stocks have significantly underperformed gold itself. According to industry insiders interviewed by reporters, the weakening trend of gold mining stocks is not only due to company operational issues, but also to the inflation caused by the surge in oil prices resulting from the tense situation in the Middle East, which may make the Federal Reserve and other central banks more cautious in their interest rate cuts, putting pressure on the price of gold in the short term. However, the second quarter may present opportunities for positioning, as central banks continue to purchase gold, and other factors supporting long-term growth are still present. Analyst Cen Zhiyong from the Paulownia Research Institute told reporters that in addition to fluctuations in the price of gold, gold mining stocks are also affected by company operations, debt issues, and stock market sentiment, all of which can impact stock prices. Furthermore, the recent rise in oil prices leading to inflation has made it difficult for the Federal Reserve to continue lowering interest rates and may even create pressure for rate hikes, which is also a negative factor for the price of gold.