Understanding the Market | Most gold stocks have turned down, spot gold has seen a short-term decline during the session, and the London silver squeeze has raised caution among bulls
Gold stocks surged in the morning but fell back in the afternoon, with Chifeng Gold down 3.73% and Everest Gold down 3.39%. Spot gold has dropped nearly $20 in the short term, currently reported at $4,208.84 per ounce. International silver prices have risen to a 45-year high due to short squeezes, and caution is advised regarding short-term correction risks. The Shanghai Futures Exchange has restricted a certain company's clients from opening positions in silver futures for one month, and the Shanghai Gold Exchange has reminded members to enhance risk awareness to maintain stable market operations
According to the Zhitong Finance APP, gold stocks surged in the morning but fell back, with most turning negative in the afternoon. As of the time of publication, ChiFeng Gold (06693) was down 3.73%, trading at HKD 32.546; Everest Gold (01815) was down 3.39%, trading at HKD 2.28; Tongguan Gold (00340) was down 3.12%, trading at HKD 3.11; and Shandong Gold (01787) was down 1.5%, trading at HKD 38.1.
On the news front, recently, international silver prices surged to a 45-year high due to a historic "short squeeze," which also drove spot gold prices to new highs. Guotai Junan Futures previously pointed out that from early September to the close on October 10, London gold surged by USD 507.25 per ounce, and there is a need to be cautious of the risk of a price correction after such a significant short-term increase. This afternoon, spot gold fell nearly USD 20 in a short time, currently reported at USD 4208.84 per ounce.
It is worth noting that on October 15, the Shanghai Futures Exchange announced that a certain company's client was restricted from opening positions in the corresponding futures variety for one month due to exceeding the self-trading limit on silver futures. The Shanghai Gold Exchange issued a notice stating that there are many factors affecting market instability recently, and international precious metal prices are highly volatile. All members are urged to enhance their risk prevention awareness, continue to improve risk emergency plans, and maintain stable market operations. At the same time, investors are reminded to take precautions against risks, reasonably control positions, and invest rationally
