news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

After more than two months of sideways trading, gold prices are soaring again.

In the early morning of July 17th, Beijing time, the price of gold hit a new historical high. On the morning of the same day, spot gold once exceeded US$2,480 per ounce.

The largest gold trading market in China is crowded with people

On the afternoon of July 16, a Securities Times e-company reporter visited the largest gold and jewelry trading center in China, the Shuibei Jewelry Wholesale Market in Luohu, Shenzhen, and found that the market was crowded with people and traffic.

The reporter saw that on the gold wholesale floor on the basement floor of Jinzhan Jewelry Plaza, each counter was surrounded by people who came to consult and buy gold. Many counters were even too busy. Consumers went to the counter to stop and watch, but the staff had no time to entertain them. In the entire trading market, it seemed as if everyone was "grabbing gold."

In terms of brand gold prices, on July 17, the prices of gold jewelry from major national brands such as Chow Tai Fook, Chow Sang Sang, Luk Fook Jewellery, Chow Sang Luck, and Chow Tai Seng generally quoted prices of 736 yuan to 739 yuan per gram, setting a historical high. Only a few brands of gold jewelry, such as Caibai Jewelry, quoted prices of 712 yuan per gram.

(Securities Times·e Company based on statistics from the Gold Price Query Network)

It is understood that in the past year, the domestic gold price has been rising all the way, which can be described as a triumphant rise. A gold shop salesperson said that since the beginning of this year, the gold price has continued to rise, breaking through 700 yuan per gram for a long time, and fell below 700 yuan per gram in June, but recently returned to a price above 700 yuan per gram.

Data from the World Gold Council shows that in the first quarter of 2024, mainland China's demand for gold bars and gold coins reached 110.5 tons, a year-on-year surge of 68%, the strongest first-quarter performance since 2013.

Some analysts believe that the continued rise in gold prices this year is in an environment where global interest rates remain high and the US dollar is strong, showing that neither the US dollar nor real interest rates have been able to prevent the upward trend in gold prices.

Liu Tingyu, manager of the gold stock ETF, analyzed that the gold price still has room to rise in the second half of the year. In the global interest rate cut cycle, the downward trend of US inflation and the upward trend of unemployment rate are difficult to reverse in a high interest rate environment. If the Fed cuts interest rates in the future, it is expected to start a new round of gold price rise. The latest research report of CICC also shows that the expectation of the Fed's interest rate cut has strengthened, and precious metals have been significantly supported, with certain price support in the short term.

On the morning of July 17, the A-share gold and jewelry sector performed strongly. As of press time, Laisen Tongling had hit its 10% daily limit, Lao Feng Xiang rose more than 2%, and the share prices of gold-related listed companies such as Mancaron, Mingpai Jewelry, Chao Hongji, and Dia Holdings were all in the green.

Boosting the performance of listed companies

The continued rise in gold prices also drove the performance of related companies to improve in the first half of the year.

As of now, a number of gold jewelry companies have announced their 2024 semi-annual performance forecasts, with overall performance being good.

Chifeng Gold expects to achieve a net profit of 700 million to 740 million yuan in the first half of 2024, a year-on-year increase of 124.39% to 137.21%. Chifeng Gold clearly stated that the main reason for the change in performance is that the gold production and sales price in this period increased compared with the same period last year. The company continued to take cost reduction and cost control measures, and production costs were effectively controlled.

Shandong Gold also expects good performance in the first half of the year, and it is expected to achieve a net profit of 1.25 billion to 1.45 billion yuan in the first half of 2024, a year-on-year increase of 42.07% to 64.81%. Shandong Gold said that in the first half of 2024, the company continued to optimize its production layout, strengthen technical management and technological innovation, and improve production operation rate and resource utilization rate; continued to deepen cost reduction and efficiency improvement, and improved the level of refined management, improved operating efficiency, and stabilized production costs through technological innovation, process optimization, asset revitalization, centralized procurement, and policy creation; at the same time, the continued upward trend of gold prices in the first half of 2024 and the acquisition of Yintai Gold also drove the company's profits up.

Zijin Mining expects to achieve a net profit of about 14.55 billion yuan to 15.45 billion yuan in the first half of this year, an increase of about 41% to 50% year-on-year. Regarding the performance changes, Zijin Mining said that the output of major mineral products increased year-on-year during the reporting period. The company's mineral gold output was about 35.4 tons, a year-on-year increase of 9.6%, and mineral silver output was about 210.3 tons, a year-on-year increase of 1.3%. At the same time, the sales prices of mineral gold, mineral copper, and mineral silver increased year-on-year.

Rising gold prices will even help some listed companies turn losses into profits. Western Gold expects to achieve a net profit of 50 million to 69 million yuan in the first half of 2024, turning losses into profits year-on-year. The reason for the change in performance is that the sales volume of gold produced by the company's own mines increased compared with the same period last year, and the sales price increased compared with the same period last year.

Editor: Peng Bo

Proofreading: Zhu Tianting