--- title: "Cathay Hong Kong: Gold prices rebound, recommend related targets in the gold and jewelry sector" type: "News" locale: "en" url: "https://longbridge.com/en/news/295588870.md" description: "CITIC Securities released a research report stating that due to the U.S. non-farm data falling short of expectations and weakening expectations for Federal Reserve interest rate hikes, gold prices have rebounded significantly since August 5 and have surpassed $4,300 per ounce. The firm believes that the rebound in gold prices is expected to drive a recovery in sales and profit elasticity in the gold jewelry sector, recommending targets that benefit from sales (such as fixed-price products and gold bar sales) and profit elasticity (direct sales models, slow inventory turnover, etc.), anticipating that the industry will experience a dual recovery in valuation and performance" datetime: "2026-08-11T23:06:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295588870.md) - [en](https://longbridge.com/en/news/295588870.md) - [zh-HK](https://longbridge.com/zh-HK/news/295588870.md) --- # Cathay Hong Kong: Gold prices rebound, recommend related targets in the gold and jewelry sector According to the Zhitong Finance APP, Guotai Junan has released a research report stating that with the rebound in gold prices, it recommends gold and jewelry stocks that are expected to benefit from sales and profit elasticity. The U.S. non-farm data fell short of expectations, and the Federal Reserve's interest rate hike expectations weakened. London gold has seen a significant increase since August 5, currently breaking through USD 4,300 per ounce, reaching a new high since June 18. From the end of June to early August, it fluctuated in the range of USD 4,000 to USD 4,200 per ounce. The report indicates that the previous suppression of jewelry sector stock prices was mainly due to concerns about sales, gross margins, and the sustainability of subsequent growth against the backdrop of a high base for the second quarter of 2026, caused by the weakening of gold prices. The current rebound in gold prices is expected to drive continued growth against a high base in the second half of the year, with leading companies enhancing their market share through excellent product strength and driving operational leverage release. A dual recovery in valuation and performance is expected. The report believes that the gold jewelry sector can benefit from this round of gold price rebound from both sales and profit elasticity perspectives. **1) Sales aspect**: Historically, the correlation between gold prices and industry growth rates has been stage-specific, with medium to long-term positive drivers. Since 2024, the short-term surge in gold prices has shown a negative correlation with jewelry demand and a positive correlation with investment demand; in the medium to long term, sustained increases in gold prices positively drive both jewelry and investment demand. From 2001 to 2012, the industry growth rate fluctuated in line with gold prices, but after 2013, the correlation weakened due to factors such as the decline in wedding demand. Since 2023, price increases have become the main contributor to industry scale growth. In terms of jewelry, fixed-price gold products benefit from their relatively stable pricing system, which favors sales during short-term increases in gold prices. Therefore, this round of gold price rebound mainly benefits companies that focus on fixed-price products and those primarily engaged in gold bar sales. **2) Profit elasticity aspect**: The business model determines the differences in the elasticity of gold prices on companies' gross margins. Companies with direct sales models, slow inventory turnover, a high proportion of gold sold by the gram, and those using the first-in, first-out method for inventory accounting have greater elasticity in gross margin improvement when gold prices rise. **Risk Warning:** Severe fluctuations in gold prices, drastic changes in the stock and real estate markets squeezing gold consumption demand, poor management of franchisees, and intensified industry homogenization competition, etc ### Related Stocks - [GLDM.US](https://longbridge.com/en/quote/GLDM.US.md) - [GLDW.US](https://longbridge.com/en/quote/GLDW.US.md) - [GLL.US](https://longbridge.com/en/quote/GLL.US.md) - [SGOL.US](https://longbridge.com/en/quote/SGOL.US.md) - [UGL.US](https://longbridge.com/en/quote/UGL.US.md) - [518850.CN](https://longbridge.com/en/quote/518850.CN.md) - [GOLD.AU](https://longbridge.com/en/quote/GOLD.AU.md) - [601211.CN](https://longbridge.com/en/quote/601211.CN.md) - [02611.HK](https://longbridge.com/en/quote/02611.HK.md) ## Related News & Research - [PRECIOUS-Gold hits seven-week peak as market participants weigh Hormuz reopening prospects](https://longbridge.com/en/news/295067079.md) - [PRECIOUS-Gold drifts lower from seven-week peak, US inflation data looms](https://longbridge.com/en/news/295348410.md) - [PRECIOUS-Gold climbs to nine-week high on buying momentum as inflation data looms](https://longbridge.com/en/news/295440174.md) - [PRECIOUS-Gold edges lower as markets await key US inflation data](https://longbridge.com/en/news/295568633.md) - [U.K. Moves To Allow Trading In Tokenized Gold](https://longbridge.com/en/news/295417448.md)