Understanding the Market | Gold Stocks Fluctuate Higher, China Gold International Surges Over 13% After Earnings, Lingbao Gold Rises Over 5%

According to Zhitong Finance APP, gold stocks have fluctuated and risen. As of the time of publication, China Gold International (02099) is up 13.35%, trading at HKD 212.2; Lingbao Gold (03330) is up 5.16%, trading at HKD 21.62; Chifeng Gold (06693) is up 2.35%, trading at HKD 37.48; Zijin Mining (02899) is up 1.68%, trading at HKD 35.04.

On the news front, China Gold International announced that its sales revenue for the first half of this year was USD 914.2 million, a year-on-year increase of 57.5%; mining operating profit reached USD 620 million, a year-on-year increase of 124%; profit attributable to shareholders was approximately USD 507 million, a year-on-year increase of 153.31%. In the second quarter, sales revenue was USD 461 million, a year-on-year increase of 50%, and net profit was USD 275.8 million, a year-on-year increase of 137%. The company's chairman, Hou Chengguang, stated in the earnings report that this is the company's best quarterly and half-year performance in history.

In addition, the latest data from the U.S. Bureau of Labor Statistics shows that the July PPI increase was lower than market expectations, coupled with the previously released CPI data cooling down, which further alleviates inflationary pressures. Market expectations for the Federal Reserve's interest rate hikes continue to cool. Everbright Futures believes that the probability of a rate hike in September and even within the year has decreased, but gold prices have fallen instead of rising. This may be due to the possibility of profit-taking from favorable news and may also be related to market liquidity panic caused by expectations of interest rate hikes by the Bank of Japan. However, overall, the expectation of a rate hike by the Federal Reserve in September has decreased, but the market may still maintain a high-level volatile trend