Market Insight | Gold stocks collectively open higher as September rate cut expectations peak, gold price hits another all-time high

Gold stocks collectively opened higher. As of the time of publication, Lingbao Gold rose by 5.11% to HKD 3.7, ZHAOJIN MINING rose by 4.79% to HKD 16.62, SD GOLD rose by 3.74% to HKD 18.32, and Zijin Mining rose by 2.81% to HKD 18.28. On the news front, U.S. inflation further fell below expectations, coupled with frequent dovish remarks from Powell, with market expectations for a rate cut in September almost certain. The CME FedWatch Tool shows that traders predict a 100% probability of a rate cut by the Fed in September, with a 93.3% chance of a 25 basis point cut to the 5.00%-5.25% range. Spot gold has broken through $2475 per ounce, hitting a new historical high once again. UBS strategist Joni Teves stated in a report that with weak economic data and expectations of a Fed rate cut, gold's popularity has surged. "The market is currently above the psychological level of $2400 per ounce. We believe that there is still potential for gold prices to rise, as investors currently hold relatively small positions in gold, leaving room for additional investments."