Gold stocks strengthened once more, with SD GOLD (01787) rising 5.25% to HK$38.06, ZIJIN MINING (02899) up 3.72% to HK$33.48, LINGBAO GOLD (03330) gaining 3.54% to HK$19.57, and CHIFENG GOLD (06693) climbing 2.95% to HK$32.78 at the time of writing.

Market catalysts include COMEX gold hitting a fresh high above $4,450 on December 22, according to iFinD data. Notably, Federal Reserve Governor Michelle Bowman recently warned that maintaining current interest rates into next year could heighten recession risks. Bowman noted that recent employment data suggests unemployment may exceed prior market expectations—a signal strong enough to warrant further monetary easing.

Nuoan Fund maintains that gold's medium-to-long-term upside drivers remain intact, citing global fiscal expansion, central bank purchases, dollar asset reallocation, and anticipated rate cuts by Western central banks. Similarly, Xinyuan Fund asserts gold's bull market fundamentals persist, though short-term volatility may intensify. Should U.S. core PCE continue declining, expectations for two 25-basis-point rate cuts in H1 2026 could solidify, potentially pushing gold toward $4,400.

Longer-term, with Trump poised to nominate a new Fed chair—widely expected to adopt a dovish stance—alongside U.S. fiscal deficits, elevated debt, and inflation uncertainty, real rates and the dollar index are projected to enter a downtrend, reinforcing gold's strategic allocation appeal.