Market Insight | Some gold stocks rose in the afternoon, market concerns about rate cuts have been fully priced in, institutions believe sector valuation repair is expected

Some gold stocks rose in the afternoon. As of the time of publication, Zhaojin Mining Industry rose by 4.58% to HKD 12.32, Shandong Gold rose by 4.06% to HKD 14.36, and Laopu Gold rose by 4.27% to HKD 107.4. On the news front, Goldman Sachs maintained a target price of $2700 per ounce by early 2025, believing that the inflow of asset management institutions as the Federal Reserve prepares to cut interest rates will drive the rise of precious metals. The continued strong demand from central banks around the world will also continue to provide support. CITIC Securities also stated that looking ahead, they continue to see the value of gold allocation under interest rate cuts. Industrial Securities pointed out that although the price of gold is strong, market concerns have arisen that after the interest rate cut expectations have been fully priced in, gold may enter a correction phase following the attenuation of catalysts, leading to weak performance of gold stocks in the near term. The bank noted that although there is significant uncertainty about the future trend of the U.S. economy, the hidden downside risks are relatively clear, coupled with the impact of global geopolitical risks, making the upward trend of gold prices more certain in this interest rate cut. Currently, the valuation of gold stocks is at a historical low range, reflecting relatively pessimistic market expectations. With the continued rise in gold prices, subsequent valuations are expected to recover