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Gold-related stocks listed on the mainland and in Hong Kong experienced a significant surge today following international gold prices surpassing the USD 5,000 and USD 5,100 per ounce marks. This rally was driven by heightened expectations for interest rate cuts in the U.S. and increasing global geopolitical tensions.
At the end of trading, several gold mining and processing companies on the mainland hit their daily maximum trading limits. China National Gold Group Gold Jewellery jumped 10% to CNY 10.14 (USD 1.50), Zhongjin Gold also rose 10% to CNY 33, and Western Region Gold increased 10% to CNY 37.75, based on market data. In Hong Kong, gold jewelry retailer Laopu Gold climbed 7.8% to HKD 849.5 (USD 109), while China Gold International Resources gained 8.1% to HKD 235.4.
This upward momentum underscores gold’s renewed status as a safe-haven investment amid rising political uncertainty and signs of economic weakness in the United States. Investors are increasingly betting that the Federal Reserve will ease monetary policy later this year, further propelling gold prices.
During today’s trading session, spot gold in London surged more than 2%, reaching an intraday high of USD 5,111 per ounce—a record high. Gold prices have increased by 18% in less than a month this year and crossed the USD 4,000 mark just over 100 days ago.
Geopolitical tensions in the Middle East and disputes over Greenland, which have caused tariff conflicts between Europe and the U.S., have led several European central banks to accelerate selling US Treasury bonds while increasing their gold holdings, according to Liu Tingyu, a fund manager at Maxwealth Fund Management. This shift has sustained gold’s rally, prompting repeated record highs, Liu explained.
Meanwhile, U.S. non-farm payrolls data for December fell below expectations, and manufacturing and consumer confidence indicators also showed signs of weakness. Although the chances of a Federal Reserve rate cut in January are minimal, markets are still pricing in the possibility of a 50 basis point cut later this year, Liu added.
The rise in global gold prices has also pushed retail gold jewelry prices higher in China. Leading brands such as Chow Tai Fook, Chow Tai Seng, and CHJ Jewellery are now selling gold jewelry at CNY 1,578 (USD 227) per gram, up CNY 25 per gram from the previous day, according to store visits conducted over the weekend.
Despite the increased prices, Chinese consumers continue to show strong interest in gold. Visits to several jewelry stores in shopping malls revealed steady customer traffic, with many inquiries about prices and purchases. Some stores even had queues outside, indicating high demand.
With peak gold jewelry purchasing season approaching, fueled by celebrations like the Chinese New Year and Valentine’s Day, industry experts expect short-term demand for gold to remain robust.
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