Behind the Gold Price's Big Rebound

The gold market has recently experienced a significant pullback, with the magnitude of the decline reaching an extreme value in recent years.

The sharp correction in gold prices this time is mainly due to pessimistic expectations of a Fed rate hike. However, in the past week or two, people have gradually realized that US economic data is unlikely to be as good as the surface-level non-farm payroll data released two Fridays ago. Moreover, with the US and Iran beginning to sign an agreement this week and the Strait of Hormuz reopening, oil prices are expected to continue falling. This will somewhat alleviate the transmission pressure on US inflation.

As we also mentioned in a previous post, recently, as gold prices corrected from highs, we actually accelerated and increased our gold purchases ("Gold Plunges, Some Buy Heavily").

In April 2026 alone, China's gold imports amounted to a staggering $24.23 billion, with Switzerland and Australia being the absolute core suppliers.

In the deeper mineral resource war, Chinese and US mining investments in Latin America have long been in a white-hot state. Being able to solidly obtain physical resources is more important than many intangible things in the future.

At the same time, we have repeatedly emphasized that the stock prices of mining companies and the sales prices of minerals are not completely positively correlated. For example, taking gold mining companies, the Philadelphia Gold and Silver Index (blue line), which represents short-term volatility, has recently experienced a deep correction, but the comprehensive cash flow per share of gold mining companies (yellow line), which represents the industry's fundamentals, shows an almost vertical upward trend. Mining companies are holding cash at a historical level.

(Not for investment purposes)

$MaxWealth CSI SH-SZ-HK Gold Industry Equity ETF(517520.SH) $ZIJIN MINING(02899.HK)  $CHIFENG GOLD(06693.HK)