Gold-related stocks have seen a rebound in today's trading session. At the time of writing, ZHAOJIN MINING (01818) shares are up 4.85% to HK$18.37, Jihai Gold International Holdings Ltd (02489) has risen 4.41% to HK$0.71, Chifeng Jilong Gold Mining Co., Ltd. (06693) has gained 2.9% to HK$26.24, and Shandong Gold Mining Co., Ltd. (01787) is up 2.51% to HK$17.58.

The positive movement follows data showing China's gold reserves reached 75.44 million ounces (approximately 2,346.446 tonnes) by the end of June, marking an increase of 480,000 ounces (about 14.93 tonnes) from the previous month. This represents the central bank's 20th consecutive month of adding to its gold holdings.

Analyst Perspective on Central Bank Demand

Goldman Sachs has indicated that despite pressure from expectations of a relatively hawkish Federal Reserve policy, purchases by central banks are anticipated to provide a floor for gold prices. Demand remains robust; according to the bank's estimates, central bank gold buying in May stood at 81 tonnes, with a three-month average of 67 tonnes per month, significantly higher than the pre-2022 average of 17 tonnes.

Brokerage Commentary on Investment Outlook

Zhongtai Securities has published a research note on gold investment. The firm emphasizes the investment value of the commodity itself, while also noting that on the equity side, following a deep correction in the first half of the year, valuations for gold mining companies have retreated substantially from the start of the year to relatively low levels, presenting favorable risk-reward dynamics. Beyond a potential valuation recovery, these equities are positioned to benefit further from the price elasticity associated with any rise in the gold price. Furthermore, the ongoing increase in the gold price itself continues to enhance the probability of a successful investment in gold stocks.