Understanding the Market | CHIFENG GOLD fell over 4% in the morning, with a projected 19% quarter-on-quarter decline in …

CHIFENG GOLD fell over 4% in the morning, and as of the time of writing, it has dropped 4.16% to HKD 27.66, with a transaction volume of HKD 109 million. In terms of news, CHIFENG GOLD announced that it expects a net profit of between 1.7 billion and 1.78 billion yuan for the first half of the year, a year-on-year increase of 54% to 61%. The performance change is mainly due to a significant increase in gold prices compared to the same period last year, with the average selling price of gold rising approximately 43% year-on-year, while the company continues to strengthen production organization and operational management. It is estimated that the net profit for the second quarter will be between 712 million and 792 million, with a quarter-on-quarter decline expected of 19% to 27%. Guosen Securities stated that the precious metals industry will be temporarily affected by factors such as rising oil prices due to the US-Iran conflict, a rebound in inflation expectations, and better-than-expected US employment data leading to a shift in Federal Reserve policy expectations, causing gold prices to be under pressure and fall to the range of USD 4,000 to 4,200 per ounce. However, the medium to long-term logic remains solid, with global central banks continuing to increase their gold holdings, reaching 243.7 tons in the first quarter of 2026, and the People's Bank of China has increased its gold holdings for 20 consecutive months