Gold-related stocks have extended their recent upward trajectory. At the time of writing, LINGBAO GOLD (03330) advanced 5.32% to HK$20.2, ZIJIN GOLD INTL (02259) rose 4.57% to HK$123.6, ZIJIN MINING (02899) gained 3.54% to HK$34.1, and SD GOLD (01787) increased by 3.42% to HK$20.54.

This positive movement in equities coincides with the gold price reaching a two-week high, having breached the $4,150 per ounce level. Financial institutions have offered their perspectives on the precious metal's outlook.

One view suggests that the market has already priced in expectations for monetary tightening, potentially allowing for a gradual ascent in gold prices. However, it notes that a significant spike in oil prices triggered by geopolitical events remains the primary downside risk.

Another analysis points out that the resistance zone between $4,197 and $4,264 has not been broken, indicating the prevailing intermediate-term bearish trend has not yet reversed. The current rally is seen more as a technical correction rather than a definitive change in trend, with medium-term resistance situated around the $4,500 mark.

A separate research note highlights that constraints on the gold sector from macroeconomic factors are easing, significantly enhancing the value proposition for positioning at current levels. It observes that gold prices were under pressure from U.S. Treasury yields in the first half of the year but are now finding a window for recovery as expectations for interest rate hikes have moderated following weaker inflation and employment data in June. The long-term rationale for gold remains intact, supported by central bank purchases, dedollarization trends, and the persistent underpinning of geopolitical risks on its price.