Spot gold prices have surged to new historical peaks, shattering the $3,500 per ounce mark, accompanied by a record high in silver prices. This rally in precious metals is creating a 'party' atmosphere, with upstream mining companies emerging as significant beneficiaries. The sentiment among many mining firms is encapsulated by the phrase, "Having mines means no worries in the heart." For investors grappling with 'height anxiety' regarding gold prices, the key question remains: should they decisively enter the market or adopt a wait-and-see approach? Financial Investment Daily reports that 'Gold+' products are becoming a novel option for positioning within the gold sector.

As of September 2nd, gold prices resumed their upward trajectory, with spot gold breaching $3,500/oz to set a new all-time high. By the time of reporting, it had slightly retreated to $3,481/oz. Year-to-date, gold prices have climbed over 33%, marking it as one of the best-performing commodities. Simultaneously, spot silver prices surpassed $40/oz, reaching $41.66/oz, marking a historic breakthrough. This surge in international gold prices has led to a continuous increase in domestic jewelry prices across China. Brands like Chow Sang Sang saw prices reach ¥1,041/gram on September 2nd, up from ¥1,025/gram the previous day. Major jewelers such as Lao Feng Xiang, Chow Tai Fook, and Luk Fook Jewellery have also reported price hikes.

In response to the bullish trend, numerous institutions have revised their gold price forecasts upward, with many anticipating prices to reach $4,000/oz soon. Citi Bank significantly raised its forecast, projecting a three-month gold price target of $3,500/oz, up from $3,300/oz, and adjusting its trading range to $3,300-$3,600/oz. Goldman Sachs maintained its year-end 2025 target of $3,700/oz, citing central bank gold purchases as a key driver, and suggested prices could reach $3,810-$3,880/oz if central bank buying exceeds expectations.

Market Signals

The surge in gold prices to over $3,500/oz signals a strong upward trend, driven by geopolitical and economic risks, and robust demand for safe-haven assets like gold ETFs and bars, alongside consistent central bank purchasing.
The Chinese precious metals market is expected to grow, with gold as the leading revenue generator.
Major Chinese gold miners like Zijin Mining Group, Shandong Gold Mining, and Zhongjin Gold Corp. are showing strong profit growth, with Zijin Mining and Shandong Gold reporting record revenues and profits. China Gold International Resources is noted as a potentially undervalued mid-cap stock.