Guotai Junan: Gold prices rebound, recommending related stocks in the gold and jewelry sector.

Guotai Junan released a research report stating that with the rebound in gold prices, it recommends gold and jewelry stocks that are likely to benefit from sales and profit elasticity. U.S. non-farm data fell short of expectations, and the Fed's interest rate hike expectations weakened, causing London gold to see a significant rise starting August 5, currently breaking through $4,300 per ounce, reaching a new high since June 18. From the end of June to early August, gold prices oscillated within the range of $4,000 to $4,200 per ounce. The report indicates that the previous pressure on jewelry sector stock prices was mainly due to the weakening of gold prices since Q2 2026, leading to concerns about high sales, gross profit margins, and sustainability of subsequent growth against the backdrop of a high base for the second half of the year. The current rebound in gold prices is expected to drive growth continuation under a high base for the second half of the year, enabling leading companies to increase market share through excellent product capabilities and release operational leverage. A dual recovery market in terms of valuation and performance is anticipated.