Stimulated by last Friday’s surge in international gold prices, some Hong Kong-listed gold stocks gained strength.
On the news front, New York gold futures briefly climbed to $3,655.50 last Friday, hitting a historic high.
More notably, data released by the People’s Bank of China on September 7 showed that China’s gold reserves reached 74.02 million ounces by the end of August, up 60,000 ounces from 73.96 million ounces at the end of July, marking the 10th consecutive month of increases.
Wang Qing, chief macro analyst at Golden Credit, stated that the proportion of gold in China’s official international reserve assets remains significantly lower than the global average. From the perspectives of optimizing international reserve structures, steadily advancing RMB internationalization, and responding to current global changes, the central bank’s continued gold accumulation remains a long-term trend.
Data released by Tavi Costa shows that since 1996, gold’s share in central bank reserves (excluding the US Fed) has surpassed US Treasury bonds for the first time. Costa believes this turning point may mark “the beginning of the most significant global rebalancing in modern history,” reflecting central banks’ strategic shift from dollar-denominated bonds to physical assets like gold.
Huaan Funds noted that countries are diversifying foreign reserves by increasing gold holdings and reducing dollar assets, with gold now becoming the world’s second-largest reserve asset.
Multiple institutions remain optimistic about gold’s outlook.
Minsheng Securities argues that rising expectations for a US Fed interest rate cut, coupled with structural demand improvements during the September-October peak season, will provide strong upward momentum for industrial metal prices.
Orient Securities highlights two key supporting factors: first, US dollar liquidity risks have emerged, with the Fed’s overnight reverse repo operations plunging to $21 billion, the lowest level since 2021; second, on dollar credit risks, Trump’s growing influence over Fed Chairman appointments, board nominations, and rate-cut decisions may further undermine the Fed’s perceived independence.
Ian Samson, portfolio manager at Fidelity International, pointed out, “When bonds fail to serve as risk diversifiers, gold remains a viable option for portfolio diversification, maintaining its status as the ultimate ‘safe-haven asset.'”