Gold-related stocks advanced during the morning trading session.

At the time of writing, Zijin Mining International Capital Limited (HKEX: 02259) was up 5.04%, trading at HK$104.2. Lingbao Gold Group Ltd (HKEX: 03330) rose 3.22% to HK$15.73. Zijin Mining Group Co., Ltd. (HKEX: 02899) gained 1.92%, reaching HK$30.78.

The movement follows the release of US June CPI and PPI figures, which came in below forecasts. This led investors to significantly scale back their bets on a Federal Reserve interest rate hike in July, with the international gold price maintaining a volatile pattern.

DBS has expressed a view that, supported by long-term factors such as central bank gold purchases, gold still has room to rise this year, potentially reaching $5,300 per ounce by year-end.

In a research note, Zhongtai Securities stated regarding gold investment that, on one hand, they consistently emphasize the investment value of the commodity itself. On the other hand, following a deep correction in the first half of the year, the valuation levels of gold mining companies have now fallen significantly from the start of the year to low levels, presenting a favorable risk-reward ratio.

Subsequently, beyond a potential valuation re-rating, these stocks are positioned to further benefit from the price elasticity provided by a rising gold price. Furthermore, the process of gold price appreciation itself continuously enhances the probability of a successful investment in gold equities.

The firm advises investors to actively consider investment opportunities in gold mining enterprises.