HK Stock Market Move | Golden stocks continue to rebound in recent weeks. International gold prices have risen to a two-week high. Institutions point out that the bottom configuration of the sector has significantly increased cost-effectiveness.

Gold stocks continue to rebound in the near term. As of the time of writing, Lingbao Gold (03330) rose 5.32% to 20.2 Hong Kong dollars; Zijin Gold International (02259) rose 4.57% to 123.6 Hong Kong dollars; Zijin Mining Group (02899) rose 3.54% to 34.1 Hong Kong dollars; Shandong Gold Mining (01787) rose 3.42% to 20.54 Hong Kong dollars. On the news front, the price of gold briefly rose above $4150, reaching a two-week high. HSBC believes that the market has absorbed the tightening expectations, and the price of gold may slowly rise, but the biggest downside risk is the surge in oil prices caused by geopolitical factors. JPMorgan Chase pointed out that the resistance between 4197-4264 US dollars has not been broken, the medium-term bearish trend remains unchanged, and this round of increase is more like a technical recovery rather than a trend reversal. The medium-term resistance is near 4500 US dollars. Huachuang Securities pointed out that the macro constraints on the gold sector are easing, and the cost-benefit ratio of bottom allocation is significantly increasing. In the first half of the year, the price of gold continued to adjust under the suppression of U.S. bond yields. Currently, weakening inflation and employment data in June have dampened rate hike expectations, creating a window for recovery for gold. In the medium to long term, inflation is expected to trend downward, the long logic of central bank gold purchases and de-dollarization remains intact, and geopolitical risks continue to support gold prices.